subscribe to careers
MEDIA, JOBS & RESOURCES for the COMMON GOOD
News  | 

Australian Companies Improve in Corporate Governance Reporting


Thursday, 21st June 2007 at 3:15 pm
Staff Reporter
Australia's listed companies are continuing to improve their corporate governance reporting according to latest review by the Australian Securities Exchange (ASX).

Thursday, 21st June 2007
at 3:15 pm
Staff Reporter


0 Comments


FREE SOCIAL
SECTOR NEWS

 Print
Australian Companies Improve in Corporate Governance Reporting
Thursday, 21st June 2007 at 3:15 pm

Australia’s listed companies are continuing to improve their corporate governance reporting according to latest review by the Australian Securities Exchange (ASX).

And the review has found that many more companies are following the recommended Corporate Governance Council’s principles and recommendations while others are adopting ‘if not, why not’ reporting.

The overall reported level for listed companies was higher in 2006 (90%) than in either of the two previous years (2005 – 88% and 2004 – 84%)

Chairman of the ASX Corporate Governance Council, Eric Mayne says the result demonstrates that the market is better informed about the corporate governance practices of listed entities than ever before.

Mayne says overall reporting levels have risen in three successive years, underlining the desirability of Australia’s flexible, principles-based approach to corporate governance.

He says good corporate governance is a culture of transparency and is not restricted to simply adopting the recommendations. Good corporate governance also exists where entities adopt ‘if not why not’ reporting; that is, where entities identify the recommendations they have not followed, explain why they have not followed them, and detail how their practices accord with the spirit of the relevant Principle.

Mayne says disclosure is the key and the more transparent listed entities are about their corporate governance practices, the better placed investors will be to make informed investment decisions.

He says the best form of corporate governance is where there is substantive disclosure as opposed to disclosure that is seen merely as compliance with the form of the Principles.

As well he says the ASX, through its ongoing reviews of corporate governance statements in annual reports, plays an important role in educating listed entities on what good corporate governance disclosure is.

He says the ASX and the ASX Corporate Governance Council also recognise that corporate governance is evolving and will endeavour to ensure that the principles and recommendations remain relevant to the Australian business and investment communities.

The key findings from the review, which combined the results of listed companies and listed trusts for the first time, were as follows:

Overall reporting levels – listed companies
-The overall reporting level for listed companies for all Recommendations, being the aggregate of adoption of recommended practices and of ‘if not, why not’ reporting, has increased to 90% in 2006 from 88% in 2005 and 84% in 2004 – an increase of more than 7% since the first review.
– 17 out of 28 Recommendations had reporting levels of over 90% – up from 14 in 2005 and 8 in 2004.
– An additional 6 out of 28 Recommendations had reporting levels of over 80%.

Overall reporting levels – listed trusts
– The overall reporting level for listed trusts was slightly lower than for listed companies with an overall reporting level for all Recommendations of 85%. In 2005 it was 86%.
– 13 out of 28 Recommendations had reporting levels of over 90% – up from 10 out of 28 in 2005.
– An additional 8 out of 28 Recommendations had reporting levels over 80%.

Top-500 listed entities – listed companies and listed trusts
– The overall reporting level for all Recommendations was over 94%.

Adoption reporting levels
– The adoption rate for all Recommendations, excluding ‘if not, why not’ reporting, in 2006 was 75% for listed companies and 72% for listed trusts, up from 74% and 70% respectively in 2005.
– The average adoption rate for all Recommendations among top-500 listed entities (companies and trusts) was 88%, up from 86% in 2005.

The results emerge from ASXs review of the annual reports and relevant website sections of 1,294 listed companies and 77 listed trusts – 1,371 listed entities in total – that reported with a 30 June 2006 balance date. This number represents approximately 71% of all listed entities at that date.

The review can be found in full here: http://www.asx.com.au/supervision/governance/monitoring_compliance.htm




Got a story to share?

Got a news tip or article idea for Pro Bono News? Or perhaps you would like to write an article and join a growing community of sector leaders sharing their thoughts and analysis with Pro Bono News readers?

Get in touch at news@probonoaustralia.com.au

Tags : Governance,

 Print

Get more stories like this

FREE SOCIAL
SECTOR NEWS

Write a Reply or Comment

Your email address will not be published. Required fields are marked *



YOU MAY ALSO LIKE

Not-for-profit governance in the spotlight

Contributor

Thursday, 8th August 2019 at 7:00 am

Australia’s largest Indigenous organisation forced to shut up shop

Maggie Coggan

Monday, 29th July 2019 at 5:30 pm

Lessons from the banking royal commission for the NFP sector

Contributor

Tuesday, 11th June 2019 at 7:40 am

ASX companies stagnating on gender equality

Luke Michael

Wednesday, 24th April 2019 at 4:51 pm

POPULAR

Disability groups call for better quality plans in NDIS review

Luke Michael

Monday, 12th August 2019 at 4:51 pm

Gillian Triggs to shine a light on Australia’s refugee treatment

Maggie Coggan

Monday, 12th August 2019 at 5:04 pm

Australians’ generosity a “mixed bag”

Maggie Coggan

Tuesday, 20th August 2019 at 8:23 am

ACNC takes action on charity linked to controversial animal farm

Luke Michael

Monday, 19th August 2019 at 5:24 pm

subscribe to careers
pba inverse logo
Subscribe Twitter Facebook

Get the social sector's most essential news coverage. Delivered free to your inbox every Tuesday and Thursday morning.

You have Successfully Subscribed!