Acting for You, June 2023

by CATHERINE MAXWELL FGIA FCG General Manager, Policy & Advocacy, Governance Institute of Australia 

Board Diversity Index

We launched the 2023 Board Diversity Index in partnership with Watermark Search Internationalin late April. This annual report is the only national report to put five types of diversity under the microscope, examining:

• Gender
• Cultural Background
• Skills and Experience
• Age
• Tenure and Independence

​For the first time, we also included commentary on the following aspects of diversity in the report:

• First Nations
• LGBTQ+
• Disability
• Socioeconomic background

This breadth of data allows us to share meaningful analysis of where corporate Australia currently stands on diversity, the direction we are travelling and what else needs to be done.

The report found that Australia still lags behind on ethnic and cultural diversity but signs point towards growing First Nations representation.

Find the Index at this link: https://www.watermarksearch.com.au/thought-leadership/2023-board-diversity-index

Oversight of ASIC, the Takeovers Panel and the Corporations Legislation – CHESS Replacement – Submission

Governance Institute made a submission to the Parliamentary Joint Committee on Corporations and Financial Services in relation to its Inquiry into oversight of ASIC, the Takeocers Panel and the Corporations Legislation. The subject of our Submission was the CHESS Replacement Project. Since 2017 we have represented members at a number of Project Working Groups and other Project related groups. .

Our Submission acknowledged the ongoing challenges of the Project which led to its second pause  in 2022, Our members consider the pause gives ASX the opportunity to make a fresh start with the benefit of lessons learned and advances in technology since the Project first started in 2016. We also commended ASX’s willingness to be more consultative and seek input into the planning and scope of the Project

We also noted the concerns raised in our 2018 submission about the need for an appropriate governance oversight body for the Project. Our view was that the ASX Business Committee then charged with oversight of the Project was too large and lacked the appropriate mix of skills to provide oversight. ASX has recently formed a CHESS Replacement Technical Committee. Our members consider that while it is appropriate for the technical aspects of this stage of the Project, is still too large for it to hold two-way discussion and debate of the issues. We again advocated for the formation of a governance oversight body for the Project, which can make recommendations to the boards of the ASX Group companies responsible for clearing and settlement.

We will keep members updated on further developments.

Updating the Australian and New Zealand Standard Classification of Occupations (ANZSCO) 2022 Submission

We have recently made a submission to the Australian Bureau of Statistics in relation to its project to update the classification of many occupations including that of company secretary. In our submission we noted that the role of company secretary is currently mis-classified with the roles of auditor and corporate treasurer. We also noted there is currently no classification for risk management professionals.

In our submission we advocated that:

• There be a new separate Minor Group 226 ‘Governance Professional’ within the Sub Major Group 22 Business, Human Resource and Marketing Professionals separated from the current classification ‘221 Auditors, Company Secretaries and Corporate Treasurers’.
• The Subcategories within the new Minor Group 226 Governance Professional include company secretary, assistant/deputy company secretary, governance officer with an indicative Skill Level for most of these occupations at a level of skill commensurate with a bachelor degree or higher qualification together with industry recognised post-graduate training.
• There be a new Minor Group 227 ‘Risk management Professional’ within the Sub Major Group 22 Business, Human Resource and Marketing Professionals with the Indicative Skill Level for these occupations in the new Minor Group 227 to be a level of skill commensurate with a bachelor degree or higher qualification together with industry recognised post-graduate training.

While it is likely this review will take time to complete, given its scope we will keep members updated on developments..

Good Governance Guide – Governance issues to consider when dealing with  flexible working arrangements

In consultation with our Public Sector Governance Committee working group, we recently published our latest Good Governance Guide on flexible work arrangements such as working from home, working outside traditional business hours or outside a traditional office environment. While this had been increasing in the decade leading up to the COVID-19 pandemic these arrangements are now considered normal in the post-lockdown working environment.

You can access this guide via the member resources page on our website.

Submissions

Oversight of ASIC, the Takeovers Panel and the Corporations Legislation – CHESS Replacement – 05/05/2023

Updating the Australian and New Zealand Standard Classification of Occupations (ANZSCO) 2022 – Sub-Major Group 22 Business, Human Resources and Marketing Professionals – 2212 Auditors, Company Secretaries and Corporate Treasurers – 27/04/2023

Media Releases

APRA Deputy Chair reflects on two decades of change in governance and risk management – 17/05/2023

2023 Board Diversity Index   28/04/2023

Material published in Governance Directions is copyright and may not be reproduced without permission.