New ASX Corporate Governance Guidelines

In late February the ASX released the most recent edition of their Corporate Governance Council’s Corporate Governance Principles and Recommendations.

We note that the recommendations will take effect for an entity’s first full Financial Year commencing on or after the 1 January 2020.  The link above provides you with the ASX’s full advice.

The ASX have commented specifically on disclosure of policies including diversity, code of conduct, whistle-blower, anti-bribery and corruption, and continuous disclosure.

The ASX have also commented on the requirements for Board Charters to clearly set out the roles and responsibilities of the Board.  In particular, to make sure that the Board establishes an appropriate framework to ensure relevant information is reported by management to the Board,  and the requirement of the Board to challenge management and hold them to account.

There are further advices in relation to the appointment and election of Directors, the need for written contracts of appointment, a perspective in relation to diversity, Board reviews, Board structures, a Board Skills Matrix, Director independence including a majority of independent Directors, Board values, investor and analyst presentations, information to be posted on a company’s website, recognition and management of risk, remuneration, reinforcing the principle of remunerating fairly and responsibly.