Corporate governance broadly refers to the framework of rules, regulations, practices and processes which a company is controlled by and directed. This framework dictates the relationships between a company’s board/management, shareholders and wider stakeholders, and a key part to ensuring long-term success. The focus is upon setting out the rights of shareholders and ownership functions, treating shareholders equally, ensuring transparency and disclosure, and setting out the responsibilities of the board.
No what type (public, private or charitable) or size of company, a relative level of corporate governance is needed in order to help drive organisational performance, delineate how the organisation should operate (through a company’s constitution, policy, shareholder agreements, and policies), and what Australian laws and regulations the company must comply with.
Having poor corporate governance can cause serious doubt on a company’s reliability and viability for shareholders, and create significant harm to an entity’s reputation in the market-place. Profitability is no longer the only metric of a successful investment – shareholders also want their companies to demonstrate good corporate citizenship, and sound compliance practices.
Aitken Lawyers can help your company’s corporate governance by:
- Helping draft, and advising on, governing documents (constitutions, shareholder agreements, board policies);
- Advising on statutory and common law director’s duties, including dealing with conflicts of interest, transparency and accountability to shareholders, and insolvent trading;
- Advising on financial reporting and auditing requirements;
- Helping with actions involving share capital, including share-buy backs;
- Counselling boards on internal board disputes;
- Advising on general legislation, such as the Fair Work Act, Privacy Act and Australian Consumer Law
- Preparing documentation for board meetings and annual general meetings, including minutes, resolutions and explanatory memorandum;
- Assist boards in developing a delegation of authority policy;
- Advise broadly on the Corporations Act; and
- Advise on and draft executive employment agreements.
Call the Aitken Lawyers Business and Commercial Team today for help with Corporate Governance and Compliance Issues on 02 8987 0000.