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First of all, in Australia’s governance, the shareholders’ rights are widely and strongly respected. As we know, one of the major functions of issuing the financial report is to provide financial, operational or even strategic business information to the shareholders, especially those small shareholders who are not familiar with the company’s operations, to help them the evaluate and get full access to the important business information of the company, and the shareholders’ right protection could be seen from these two readings regarding how the society and business world reacted to the event.
Secondly, the boards of directors in the majority of the Australian firms are structured to add value. One of the major debates in this event is that the highly anticipated high level of financial literacy required of the directors would probably lead to the lack of diversity in the broad structure because only those with financial and accounting background would be granted the access, this will make the board act as only the role of monitoring but lose the other functions such as leadership. Such debates exhibit the adherence to the principle of corporate governance that the boards of directors in the majority of the Australian firms are structured to add value.