Company Accounting for ASX Corporate Governance Principles

Question: Discuss about theCompany Accounting for ASX Corporate Governance Principles. Answer: Australias corporate governance and continuous disclosure framework is regarded the best in the world. This is the reason why it has also been adopted by various other jurisdictions. Moreover, the Corporations Law in Australia require organizations to keep the market informed of significant developments and there are negative consequences for those who fail. In relation to Getswift Ltd, it is notable that the acquisition of Pursuit Pty Ltd necessitates variations in its current corporate governance practices so that it can easily adhere to the ASX Corporate Governance Principles. In relation to structuring the Board of the company, it is notable that there are no committees established for the purpose of discharge of responsibilities. Furthermore, since acquisition of Pursuit Pty Ltd is a major task for Getswift, it is recommended that it facilitates proper provisions for the establishment of relevant committees like the nomination committee. The reason why establishment of such committee is crucial for the company can be attributed to the fact that it assists in examining the selection and appointment approaches of the company[1]. Furthermore, such committee must comprise of only non-executive directors who are responsible for reviewing Board succession measures, assessing performance of the Board and directors, and evaluating required and desirable competencies of such board members. Overall, with such recommendation, the company can be easily assisted in discharging its responsibilities in an effective way. Another crucial recommendation for the company in relation to compliance with the ASX Corporate Governance Principles is that it must make proper provisions for establishing an audit committee. Since the company has not designed an audit committee and it is overseen by the Board, it must be noted that integrity of financial reporting can only be attained through an audit committee[2]. Without an audit committee, Getswift cannot facilitate good corporate governance measure in the entire industry and may fail to achieve penetration into the market even by acquiring its major customer Pursuit Ltd. Furthermore, in relation to this, it must be noted that such establishment of audit committee must also have their own charter wherein the roles and responsibilities of committee members are clearly laid down. Moreover, if integrity of financial reporting is obtained through establishment of an audit committee, the company can easily comply with ASX Corporate Governance Framework[3]. Besides, such integrity is demanded by every stakeholder in the market and if Getswift does not consider such recommendation, it may fail to retain trust and confidence on the part of such stakeholders. The third recommendation to Getswift Ltd is that it must establish an efficient remuneration committee in its framework so that it can adhere to the requirements of ASX Corporate Governance Principles. The reason behind this can be attributed to the fact that the scale and size of the company has restricted it to frame a remuneration committee that will result in future complications after acquisition of Pursuit Ltd. Moreover, the roles and responsibilities of such committee are overseen by the Board of Getswift itself, thereby creating a scenario wherein it is becoming overburdened in nature. In relation to this, it is recommended to the company that it must design a proper remuneration committee so that the policies associated to remuneration are focused upon in an effective way. Besides, such committee must primarily comprise of non-executive directors of the company wherein majority are independent in nature[4]. However, if the board can manage the roles and responsibilities of t he Group, it can do so but there are various guidelines in relation to remuneration of executives and non-executive directors. In relation to this, it is observable that the company offers remuneration to its non-executive directors based on the level of remuneration paid to non-executive directors by organizations of similar size in the industry[5]. It is recommended that the company must remunerate its non-executive directors normally in the form of cash, superannuation contributions, non-cash benefits, or equity. Furthermore, such directors must not receive bonus payments or options by the Board. In addition, these directors must not be offered retirement benefits except for superannuation advantages. Therefore, the company must consider this recommendation of overseeing its fair and responsible strategy of remuneration for complying the objectives or requirements of ASX Corporate Governance Principles. Therefore, these recommendations can be taken into consideration that can allow Getswift comply with ASX requirements and effectively acquire its primary consumer named Pursuit Pty Ltd. Bibliography Fen Osler, Hampson. Turbulent Peace: the Challenges of Managing International Conflict, Washington, 2012. Kowalewski, Oskar. Corporate governance and corporate performance: financial crisis. Management Research Review 39, no. 1 (2016): 1494-1515. doi: 10.1108/MRR-12-2014-0287 Marc, Goergen. International Corporate Governance, Prentice Hall, 2012. Rachael Ajomboh, Ntongho,.Culture and corporate governance convergence. International Journal of Law and Management 58, no. 5 (2016): 523-544. doi: 10.1108/IJLMA-04-2015-0016 Thomas, Clarke. International Corporate Governance, New York: Routledge, 2010.