The paper "Corporate Governance in Australia" is a perfect example of an assignment on management. Corporate governance is the underlying system for which entities are directed and controlled. These systems, mostly present in large public firms, can either be internal or external in nature (Strydom, 2009). Internal governance is mostly attributed to the entity-level control mechanisms, which is usually conducted by an independent board of directors, and implemented in the course of trying to achieve better ways of corporate governance (Strydom, 2009). Subsequently, external governance greatly attributes to possible takeovers as well as the market for corporate control and it is catapulted by mostly country laws as well as institutions, cultural norms and, also other notable monitoring aspects. The Australian corporate governance regulatory environment is distinctively developed.
It is crucial to note that the present Australian governance regulation results from the Corporations Law Economic Reforms Program (CLERP9) and the ASX Principles of Good Corporate Governance (ASX GCG) (Strydom, 2009). The ASX GCG is composed of 10 distinctive principles that ensure to define fundamental aspects deemed necessary for attaining good corporate governance. In essence, it constitutes recommendations on how to structure the board, CLERP9 only requires that all top 500 listed Australian public entities have an audit committee. In my opinion, Santos Ltd exercises good corporate governance since it has ensured to adopt both the updated version of the Corporations Act 2001 as well as the listing principles of the Australian Securities Exchange (ASX).
In fact, while it is still not to report against the 3rd edition of the ASX principles; the entity has gone ahead to allow transition in relation to its adoption hence is going to report on this 3rd Ed within the 2015 financial report. The company’ s corporate governance strengths can be reflected in its ability to report on the composition of the board for which it has a total of 10 directors (a majority of 9 independent non-executive directors and one executive director); it enjoys a significant number of board committees and especially the audit committee, which is part of the 5 committees in place.
Each of these committees has a limited number of members (3), which ensures that the decision-making process is conducted in an expedited manner; it has established a nomination committee.
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