Corporate Governance in Australia

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Introduction A decade ago, the term 'corporate governance' was barely heard. Today, it's like climate change and private equity, corporate governance is a staple of everyday business language and capital markets are better for it (ASX 2010). Therefore, corporate governance can be defined as a term that refers broadly to the rules, processes, or laws by which businesses are managed, regulated, and controlled. The term can refer to internal factors defined by the officers, stockholders or constitution of a corporation, as well as to external forces such as consumer groups, clients, and government regulations (Farrar, 2009). But Spafford (2003,p. 24) stated that Corporate Governance is a manner in which the power of a corporation is exercised in the running of the corporation's total portfolio of assets and resources with the objective of maintaining and increasing shareholders' long-term value while taking into account the interest of other stakeholders. It therefore tends to ensure that leaders act in the best interests of the corporation and its stakeholders. Besides that it enhances effectiveness, competitiveness and sustainability of the corporation (Spafford,2003). Outline brief history of corporate governance The history of Corporate Governance can be traced back to the year 1929 according to Taborda (2009,p. 21), when the first Governance legislation known as Great Crash (GC) was enacted in response to corporate excess. Arguably, the objective of the legislation
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