KPMG Australia’s report discusses director liability concerns, the opportunity to develop a ‘flagship’ report, and the opportunities that recent changes to ASX Corporate Governance Principles can bring to both directors and their company.
Boards should respond to the 2014 changes in the ASX Corporate Governance Council’s Principles and Recommendations by:
- disclosing the composition of the corporate reporting portfolio and the level of oversight provided by the audit committee and/or directors in the Corporate Governance Statement
- publishing much of the Corporate Governance Statement on the corporate website, highlighting the material strategic issues that and were considered during the period and actions taken
- using the change in requirements as an opportunity to reduce the volume and complexity of current corporate reporting, by removing immaterial disclosures, and by taking a fresh look at the clarity and flow of existing reports
- considering whether further assurance from external parties is required to match any extension of oversight responsibilities under the ASX CGC Principles.