What Is The ASX Principle Of Good Corporate Governance

Corporate governance has been one of the principal factors responsible for the global economic downturn in the form of corporate collapses and frauds across the world. (Arens et al., 2011) states that the rising number of corporate failure has become a debatable issue and it advocates propose that it is extremely imperative to have good corporate governance in organisations. The adoption of poor corporate governance is clearly noticeable in most famous corporate collapse like: HIH Insurance, One Tel, Washington Mutual, Lehman Brothers, etc.
These collapses have thrown a light on the importance of implementation of proper corporate governance into practice. The companies failed because of the poor structure designed by the board, which allowed …show more content…
The application of strategic consideration requires active involvement of the directors in Board decisions. Directors at BHP are sharp communicators and good listeners who work together with the board with a mutual consent. The company makes sure that all directors take their decision or action in the best interests of the business and are organised to spend adequate time and resources for the role performance efficiently. (BHP
Billiton, 2012)

BHP Billiton follows: The ASX Corporate Governance …show more content…
The Board of directors oversees the audit and risk committee to ensure the following:

• The reliability of the financial statements

• The employment, remuneration, qualifications, objectivity and presentation of the External Auditor and the truthfulness of the whole audit procedure

• The internal audit purpose performance and leadership during the process

• The usefulness of the structures of internal governors and risk