The meeting reaffirmed its earlier commitment to release the Principles of Good Corporate Governance and Best Practice Recommendations of the Council at the end of March this year.
Ms Hamilton reminded the Council that ASX had amended Listing Rules so as to require listed entities to adopt the new Principles and Recommendations or to disclose to their shareholders why they had not adopted them. This Listing Rule takes effect for the first full year after the introduction of the Principles and Recommendations - that is, for the 2003-04 financial year.
The Council noted that the Principles and Recommendations are being issued in good time for companies to consider reporting against them for the present financial year.
The Council also noted that the Principles and Recommendations are evolutionary in nature. The Council has expressed its commitment to monitoring and reviewing the Recommendations in the light of experience, and will develop a mechanism to facilitate feedback from listed companies in relation to implementation.
The Council noted that the Principles and Recommendations are designed as aspirational and disclosure-oriented statements of best practice. They are aimed at empowering shareholders, by ensuring that shareholders have timely access to the information they legitimately need to make informed investment decisions. They accommodate the range and diversity of Australian listed entities while remaining in step with international best practice.
Today's meeting was devoted to a review of an initial draft of the Principles of Good Corporate Governance and Best Practice Recommendations that have been produced through the combined efforts of Council members. Ms Hamilton thanked Council members for their input and praised the constructive and focused nature of the Council's deliberations, at both full Council and working group levels. She also thanked those additional groups who had contributed to drafting and reviewing the Principles.
The Council agreed to meet again in early March 2003 following further consultation by Council members with their constituents, to finalise the Principles and Best Practice Recommendations.
The meeting was attended by representatives of: Association of Superannuation Funds of Australia Ltd, Australasian Investor Relations Association, Australian Council of Super Investors Inc., Australian Institute of Company Directors, Australian Institute of Superannuation Trustees, Australian Shareholders Association, Business Council of Australia, Chartered Secretaries Australia, CPA Australia, Group of 100, Institute of Actuaries of Australia, Institute of Chartered Accountants of Australia, Institute of Internal Auditors Australia, International Banks and Securities Association of Australia, Law Council of Australia, National Institute of Accountants, Property Council of Australia and Securities Institute of Australia.
