Leadership in corporate governance
ASX convenes the ASX Corporate Governance Council. The Council was established in 2002 and is an independent body that brings together various business, shareholder and industry groups. ASX nominates the Chair (currently Elizabeth Johnstone), contributes one member to the Council and provides executive support.
The ASX Corporate Governance Council publishes a principles-based framework for corporate governance practices – the Corporate Governance Principles and Recommendations – that serves as a relevant and practical guide for listed entities, investors and the wider Australian community.
ASX’s listing rules require that listed entities disclose the extent to which they have followed the recommendations set by the Council during the relevant reporting period. Where companies have not followed a recommendation, they must provide an explanation (‘if not, why not’ reporting). These reporting requirements bring transparency to the corporate governance practices of listed companies which in turn enables investors to make informed investment decisions.