ASX is consulting on a two-staged update to its corporate governance policies. Stage 1 proposes a new edition of the ASX Corporate Governance Council’s ‘Corporate Governance Principles and Recommendations’ and stage 2 proposes governance-related amendments to the ASX Listing Rules and Guidance Note 9 (Disclosure of Corporate Governance Practices). Two consultation papers have been released with the consultation period for both closing on 15 November 2013.

  1. Proposed third edition of Corporate Governance Principles and Recommendations

The ASX Corporate Governance Council’s consultation paper seeks comments on a proposed third edition of its Corporate Governance Principles and Recommendations (Recommendations). The draft third edition accommodates developments in corporate governance matters since the second edition was released (originally published in 2007 and amended in 2010), and allows listed entities more flexibility in making corporate governance disclosures. The aim is to introduce the third edition on 1 July 2014.

The 8 principles in the current edition remain but have been reworked in many cases to call for stronger links between the principle and the supporting recommendations. The top 6 things you should be aware of are as follows:

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  1. Governance-related changes to ASX Listing Rules and Guidance Note 9

ASX has released a consultation paper proposing a number of governance-related amendments to its Listing Rules and Guidance Note 9 (Disclosure of Corporate Governance Practices). These amendments complement and give effect to the changes proposed in the third edition of the Recommendations. All changes are scheduled to take effect on 1 July 2014, except new Listing Rule 3.19B, which is to take effect on 1 January 2014.

A marked-up version of the Listing Rules and an explanation of each amendment can be found here. A marked-up version of the proposed changes to Guidance Note 9 can be found here.

The top 3 things you should be aware of are:

Click here to view table.