Corporate Governance

Question 1

aim

Answer 1

to ensure accountability, transparency, and ethical conduct

Question 2

tiers

Answer 2

1: established legal duties under CA 1993 and other relevant legislation

2: mandatory NZX Listing Rules

3: various best practice codes and guidelines

Question 3

NZX Corporate Governance Code tiers

Answer 3

1: 8 principles, if don’t comply, need to justify why they haven’t complied with it

2: recommendations on a “comply or explain” basis

3: commentary with guidance on meeting recommendations and optional best practices

Question 4

FMA Corporate Governance Principles

Answer 4

9 principles:
Principles 1-7 focus on governance for shareholders

Principles 8 & 9 address relationships with shareholders and stakeholders

Question 5

Corporate Social Responsibility (CSR) elements

Answer 5

Environmental: steward of the natural environment

Social: manages relationships

Governance: leadership, exec. pay, holder rights