Corporate Governance Council To Broaden Disclosure - Statement By The ASX Managing Director And CEO, Mr Richard Humphry

"The Australian sharemarket is strongly supervised by ASX, backed by sanctions contained in the Corporations Act as administered by the Australian Securities and Investment Commission (ASIC). This co-regulatory approach is rated among the best in the world and has operated in a robust and a resilient fashion over the last decade.

"ASX Listing Rules have for the last six years required companies to report on their corporate governance practices in order that the market and shareholders are fully informed. The focus is on disclosure rather than prescription.

"To further broaden this disclosure regime, ASX will lead a renewed initiative to develop an agreed set of corporate governance standards of best practice for Australian listed companies."

ASX will convene a Corporate Governance Council tasked with the development, on the basis of consultation with the business community, of a set of consolidated and up-to-date standards.

"The Council will initially include the Business Council of Australia, the Australian Institute of Company Directors, Chartered Secretaries Australia, and the Securities Institute of Australia - all of whom have indicated their willingness to participate. Other representative bodies will be included as appropriate.

"The Council will be chaired by Ms Karen Hamilton, ASX Executive General Manager, Issuers and Market Integrity.

"The Council will build on and complement the work of the industry Corporate Governance Roundtable - convened by ASIC and chaired by Ms Jillian Segal - of which ASX is a member.

"We envisage that the conclusions of the Council will be made available for comment by the Corporate Governance Roundtable, the Financial Reporting Council, the Commonwealth Treasury and other interested parties.

"Standards developed by the Council will be issued as a co-branded statement by all parties involved in their development, and as such would carry a strong endorsement of expected practice by companies.

"Further, ASX will enhance current Listing Rule disclosure requirements where appropriate to ensure that listed companies fully report to the market and shareholders on their adherence to these standards.

"I am pleased that the Parliamentary Secretary to the Treasurer, Senator Ian Campbell, has fully endorsed this initiative.

"We are happy to take a leadership role in this area and we are pleased that members of the business community support this initiative.

"At the same time, we will be continuing to consult and communicate with the business and investment community about the Enhanced Disclosure provisions we announced on 19 July."