Part – 1 Corporate Governance
Corporate governance is a set of procedures, policies, customs and laws which affect the working and operation of the corporations through which corporations are controlled, administered or directed. Corporate governance as a business ethics issue is far more powerful and influential than globalization and internet explosion which destroy any corporation in weeks. Corporate governance in the present day is a competitive necessary in operating a business. It began almost two decades back and achieved a greater pace and momentum in the last few years. In the recent years corporate governance codes have been developed in many countries, almost all the codes developed by different countries are similar except few. Since Enron, Vivendi and Marconi had cheated the innocent people, the need for effective code of corporate governance has increased many folds.
In order to check the effectiveness and applicability of corporate governance in the corporations of Australia, in this regard two companies i.e., Ansell Limited & Ammtec Limited, from the Australian Stock Exchange. Ansell Limited is following the codes of corporate governance more effectively than the Ammtec limited. Major codes of corporate governance have been followed by both the companies such as formation of board, remuneration & performance of directors, ensuring the independence and declaration of true and fair facts related to the management and financial performance of the corporations. Board of directors is the ultimate authority which administered and regulates the affairs of the business of the corporation. Appointment of non-executive independent directors in both the companies ensures the balance of power and impartiality of the board towards the common interest of the shareholders.
Ansell Ltd is providing more detailed information in its financial statement about the strategies and policies adopted by the company especially the board of directors in the...