Blue Sky Alternative Investments Limited

How the latest edition (3rd) of the ASX Corporate Governance Principles plausibly halts the failure of Dick Smith Electronics will be discussed in this essay. I argue that ASX Corporate Governance Principles is one of the corporate governance practices that many listed entities in Australia should comply with in order to achieve good corporate governance preventing the collapse of corporations and increasing investors’ confidence. Regarding Dick Smith Electronics as a listed entity, it would survive and continuously operate as a biggest Australia electronic retailer if the better application of this practice is fully adopted.

Corporate Governance: It is very important for an organisation to follow rules and regulations. To be a successful company rules and regulations are must to be followed. An analysis of Caltex Australia Ltd. report, there has been proper governance mechanism followed at Caltex for the purpose of ensuring efficient performance levels. There has been a separate corporate governance statement that discloses about the corporate performance levels and governance mechanism as followed by the company. As per the governance statement, it is analysed that there are sound principles and practices that are required to be followed by employees working in the organisation. As for example, corporate governance at Caltex indicates that the employees are required

Maintain and run a healthy institution and organization is like a teamwork. An effective governance is the fundamental of a successful corporation. Board members should make a comprehensive policy system for the company, they also should improve and modify the policies with the times. They also need to make significant strategy, mission, and vision together with the regular meeting. In this Sunbeam case, the board members with the CEOs might lack communication, so made a not very appropriate strategy and did not implement it well. Finally, oversight is one of the important roles of the board members. In this case, the board members should pay attention the strategy’s implement situation, how the strategy was implemented instead of just focus on the stock price and share of values. It is useful to periodically review the activities to ensure everything goes on as

The company has implemented the first principle, lay solid foundations for management and oversight. The role of the board is to build long term sustainable value for its security holders whilst respecting the interests of its stakeholders. The board is responsible for the overall corporate governance of the company including formulating its strategic direction, setting remuneration and monitoring the performance of directors. The board approves and monitors expenditure, ensures the integrity of

Absolutely key in this endeavour are the leadership of the chairman of a board, the support given to and by the CEO, and the frankness and openness of mind with which issues are discussed and tackled by all directors. 4. The challenge should not be underrated. To run a corporate board successfully is extremely demanding. Constraints on time and knowledge combine with the need to maintain mutual respect and openness between a cast of strong, able and busy directors dealing with each other across the different demands of executive and non-executive roles. To achieve good governance requires continuing and high quality effort. 5. The Code’s function should be to help boards discharge their duties in the best interests of their companies. In recent reviews of the Code, the FRC has focussed on changing the “tone” of the Code by making limited but significant changes to signal the importance of the general principles which should guide board behaviours. It is to be hoped that these changes will promote greater clarity and understanding with regard to the tasks of a board and that communication with shareholders will be more effective as a result. 6. Chairmen are encouraged to report personally in their annual statements how the principles relating to the role and effectiveness of the board (in Sections A

* The Board of Directors should approve the proposed option trading policy and should choose buying a call option on a listed stock as their option investment strategy.

Preparing for the Future Risk Factors Corporate Governance Board of Directors, Corporate Auditors and Operating Officers Financial Section Corporate Information

The governance of the company consists of a board of directors, executive officers, and board committees. The board of directors are responsible for “establishing broad corporate policies, setting strategic direction, and overseeing management, which is responsible for the day-to-day operations of the Company56.” Assisting the board of directors are the following committees57

Boardrooms are changing. Directors can no longer be passive. They must be alert, accountable and active. The board’s performance has come under more scrutiny. Shareholders, members and staff expect more from their boards.

Diversity of a corporate board is important in terms of varying skill sets and experience of board members. The diversity brought by different board members allows a contrast in perspectives and opinions on how the benefit the corporation. A corporate board should have a separate director (with explicit rules and regulations) that is capable of properly managing. The director must also be capable to decide whether it is the corporation’s best interest to have CEO participation with a corporate board. Also, the board of directors make decisions for shareholders “as a fiduciary,” while seeking commercial stability of the company. The board of directors is in charge of hiring and firing executives. A poor structured board makes it almost impossible to fire ineffective officials, (Staff, page 1). To clearly see the accounting of a corporation, no corporation should stray away from clearly explaining the corporation’s accounting outcomes. The calculating of corporate incomes should always be shown in “stock-or options based on compensation.” There must be a productive commitment to engage with shareholders between company and its’ shareholders in order to have the best governing, (Commonsense Corporate Governance Principles, (n.d.), paragraph 5-9). Many executives and investors have made it their primary goal to get the most profit on quarterly earnings in contrary to long-term growth of the investments and company. At the corporate level,

♦ Monitor management performance. ♦ Map out the mechanisms for internal and external liaison and communications. ♦ Define how the Board will operate including: What information or reports it requires on a monthly or quarterly basis. How, with what data, and by what means, it will constantly monitor management performance and the financial progress of the company. How it will evaluate its own performance at least once every year. ♦ Ensure that the company is properly managed and for the attainment of lawful objectives. ♦ Ensure that the company’s affairs are not managed or conducted in a manner oppressive to any of its shareholders or for fraudulent purposes. ♦ Ensure that the company complies with all statutory requirements.

Corporate governance is a key term to understand and it is increasingly important part of running a successful company. The system has evolved over the years, guided by the challenges and misjudgements of the corporate world.

The cardinal principle of mechanics of administration is that a compelling board ought to head each establishment, which is altogether in charge of the accomplishment of the association. The part of the board is to give .The board assumes a critical part of heading the association under the ambit of fitting administration and powerful controls that empowers dangers to be evaluated and oversaw .

The board is responsible for the governance of risk. It should establish a sound system of managing risk and internal control.

“Corporate Governance is the acceptance by management of the inalienable rights of shareholders as the true owners of the corporation and of their own role as trustees on behalf of the shareholders. It is about commitment to values, about ethical business conduct and about making a distinction between personal and corporate funds in the management of the company”.