The New York Stock Exchange has recently published a practical guide on corporate governance issues targeted at public companies which are faced with intricate issues of governance and a changing market.
In releasing the guide, the NYSE noted that it “has long recognised the role of good corporate governance in protecting shareholder value and, in turn, the capital markets”. It sees open communication and trust in the board and management as crucial to maintaining investor confidence.
The guide covers a number of jurisdictions, including a chapter on Australia, authored by the team at King & Wood Mallesons. As you will see in our article, the boards of Australian listed companies have been confronted in recent years by a range of difficult issues including disclosure of corporate governance compliance, executive remuneration, disclosure of confidential acquisition proposals and shareholder activism. This is largely a result of a combination of challenging business conditions and heightened scrutiny of board decision-making, which has sharpened market focus on corporate governance in Australia.