The 3rd Edition of the ASX Corporate Governance Principles and Recommendations takes effect from the financial year ended 30 June 2015.
The key change is the option for a company to publish its current corporate governance statement outside the Annual Report.
The major aspects around publication are:
- the corporate governance statement and any related disclosures should appear in a clearly delineated Corporate Governance section of the Annual Report or on an easily accessible corporate governance landing page on the entity’s website
- where disclosure is made on a website, the Annual Report must clearly state where interested parties can read or obtain a copy of that material (for example the URL of the relevant web page). A copy of the current statement must be provided to the ASX at the same time as the Annual Report
- if an entity’s board considers that a corporate governance recommendation is not appropriate to its particular circumstances, it is entitled not to adopt it. However, it must explain why it has not adopted the recommendation – the ‘if not, why not’ approach
- listed entities should provide a holistic and informative explanation of their corporate governance framework rather than a mere compliance document. It should demonstrate board and management commitment to the importance of proper and effective corporate governance arrangements and a robust approach to corporate governance.
A number of ASX listed companies chose to adopt the 3rd Edition Principles earlier than required.
The full 3rd Edition can be downloaded at http://www.asx.com.au/documents/asx-compliance/cgc-principles-and-recommendations-3rd-edn.pdf