Flexibility will enhance accountability when applying governance guidelines

The Australian Shareholders' Association (ASA) is to be commended for calling for comments on its Corporate Governance and Proxy Voting Policies and Guidelines . CSA has been a long-term champion of a flexible, principles-based approach to corporate governance as embodied in the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations. They are not prescriptions, but guidelines designed to enhance accountability. A company has the flexibility to not adopt a Recommendation as long as it explains to shareholders why. But we are concerned that the ASA policies and guidelines take a 'one-size-fits-all' approach to corporate governance. The experience of our Members is that they are often applied in an inflexible manner the antithesis of the if not, why not regime ... READ MORE

Released by CSA News Update - 12 September 2012