On 27 July the AICD provided a submission to the ASX Corporate Governance Council on the consultation draft of the proposed fourth edition of the ASX Corporate Governance Council Principles and Recommendations (Principles).
The Principles are an important component of Australia’s corporate governance framework, and are intended to provide flexible, industry-led guidance on what constitutes good governance for listed entities.
The AICD has supported the Principles since their inception, and recognises that it is an opportune time for a review in light of emerging developments in domestic and global corporate governance. While the AICD notes the critical role played by the Principles in setting a benchmark for corporate governance, we also acknowledge that they cannot be a panacea for the challenges facing corporations, including the trust deficit with the community. Instead this trust must be re-built from the ground up, with each organisation, led by its board and senior management.
Our submission focuses on the need to ensure that the Principles remain focused on core governance issues and avoid prescription (on the basis that the governance practices a listed entity chooses to adopt is fundamentally a matter for the board).
Download the Appendix - AICD comments on the draft ASX Principles.
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