What is corporate governance?

Corporate governance is the system by which companies are directed and managed. It influences how the objectives of the company are set and achieved, how risk is monitored and assessed, and how performance is optimised.

Good corporate governance structures encourage companies to create value (through entrepreneurism, innovation, development and exploration) and provide accountability and control systems commensurate with the risks involved.

What constitutes good corporate governance will evolve with the changing circumstances of a company and must be tailored to meet those circumstances. Best practice must also evolve with developments both in Australia and overseas.

Fundamental to any corporate governance structure is establishing the roles of management and the board , with a balance of skills, experience and independence on the board appropriate to the nature and extent of company operations.

There is a basic need for integrity among those who can influence a company’s strategy and financial performance, together with responsible and ethical decision-making .

Meeting the information needs of shareholders and the modern investment community is also paramount in terms of accountability and attracting capital.

Presenting a company’s financial and non-financial position requires processes that safeguard, both internally and externally, the integrity of company reporting , and provide a timely and balanced picture of all material matters .

The rights of shareholders, need to be clearly recognised and upheld .

Every business decision has an element of uncertainty and carries a risk that can be managed through effective oversight and internal control . Keeping pace with the modern risks of business and other aspects of governance requires formal mechanisms that encourage enhanced board and management effectiveness .

Rewards are also needed to attract the skills required to achieve the performance expected by shareholders . The impact of company actions and decisions is increasingly diverse and good governance recognises the legitimate interests of all stakeholders.

Avantia Corporate Services hand picked Independent Directors are available for Board appointments accross a range of Industries. With many years of experience they can bring objectivity, strategic direction and independence to Private Company Boards. All Avantia´s Independent Directors have completed the Australian Institute of Company Directors (ACID) Corporate Governance course and are experts in their fields.

Call our office on 07 30109711 for an appointment to discuss your requirements.