Corporate Governance
Situation:
Corporate governance has been seen more as a necessity than an option for organizations in
recent times due to several large-scale corporate collapses both abroad and in Australia.
Task: Answerthe below questions
1. Define corporate governance and its purpose for organizations
2. The collapse of Enron and HIH insurance were seen as a breakdown in corporate governance. What were the circumstances surrounding their demise?
3. What are the Australian Stock Exchange Corporate Governance Council’s Corporate governance principles and recommendations?
4. Are the principles and recommendations mandatory for all organizations to follow?
5. Give a brief explanation of principle 7 and it’s recommendations.
6. What is the function ofa risk management committee?
7. What is an audit committee? An audit committee should contain a majority ofindependent directors. What classifies a director as independent?
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