Word Limit
2,300-2,500 (assignments exceeding the word limit may not be marked and
may be returned to the student for re-writing; assignments less than the
required length will risk not covering the topic adequately and may result in a
fail). Do not include synopsis, references or bibliography in the word count.
Assignment instructions
Complete the tasks in Part A and Part B
Part A (70 marks)
Attention in the media has once again focused on corporate governance, that
is, how companies are regulated by governments and how they are managed
internally.
With reference to corporations registered in Australia, critically discuss
whether better governed corporations outperform poorly governed
corporations in Australia
(Hint: as a starting point, read Treasury Working Paper 2009 – 02 March
2009).
Your discussion is expected to include explanation and analysis of
o what is good corporate governance, what mechanisms play a role
in corporate governance in Australia and why good corporate
governance is relevant for key stakeholders generally
o key financial measures that generally determine the performance of
a corporation’s governance; with an evaluation of the performance
of Australian corporations’ boards of directors in the light of these
measures
o whether current Australian legal regulation of directors duties is
adequate to protect corporate directors
Part B (30 marks)
A continuing debate in corporate governance is whether there is a positive
correlation between an 'independent board' (ie a board consisting of a
majority of independent directors) and good corporate performance.
Task:
Identify arguments that support the proposal that there is such a positive
correlation, and arguments that refute the proposal. Limit your discussion to
corporations registered in Australia.
(Hint: as a starting point, read the commentary by Professor Peter Swan
reported in Australian Financial Review p6 and Bob Austin p55 31 July 2014).
Your discussion is expected to include explanation and analysis of
o what makes a director an 'independent director' of an Australian
corporation,
o the primary role of a board of directors
o what is meant by good corporate performance and how it should
be measured (if you have discussed this in Part A you may refer to
that discussion)