The bill that repealed the rule that allowed 100 members to requisition a general meeting, and which has since received Royal Assent, also included the removal of a requirement for corporations to appoint an auditor despite not being required to be audited because they either have revenue that is lower than the threshold for requiring audit or review, or are otherwise exempt. This is a welcome relief for many charities that are companies limited by guarantee.
ASX has clarified in a formal manner when an earnings surprise ought to be disclosed to the market in revisions to Guidance Note 8 on continuous disclosure.
The 3rd edition of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations introduced significant enhancements to Principle 7. The key recommendations on the need to set up and manage a risk committee to oversee risk, and board oversight of an annual review of the risk management framework put in place by management remain.
A joint study from Diversity Council Australia (DCA) and Deakin University into the cultural diversity of ASX boards finds that, although ASX boards have become more culturally diverse over the past decade, they still do not reflect the diversity levels represented in Australian society. In each of ASX 100, ASX 200 and ASX 500 listed companies, only one-quarter of directors are from culturally diverse backgrounds (non-Anglo-Celtic) compared with one-third of the wider Australian community. And while there has been a 22 per cent increase in directors with culturally diverse backgrounds since 2004 in all ASX companies, the increase of cultural diversity on ASX100 boards has only been 10 per cent.