A high percentage of listed Australian companies still have significant deficiencies in their corporate governance policies, with less than 16% (39) of the 250 largest companies by market capitalisation achieving best practice standards.
At the same time, of those companies ranked 251-400 by market capitalisation, which are classified as mid-caps, less than 5% (7) demonstrated best practice governance standards in the 2008 financial year.
The 2009 WHK Horwath Large Cap and Mid-Cap Corporate Governance reports, which have been released today, also show a marked increase in the number of listed companies that were totally lacking in corporate governance structures and policies based on their 2008 annual report disclosures.
The separate reports rank the performance of listed companies on key governance factors such as board composition and independence, auditor independence, having separate audit, remuneration and nomination committees in place and carbon emissions disclosures. As well as failing in these areas, the worst performers also have inadequate documentation in areas such as disclosure of related-party transactions or rigorous policies on risk management and share trading.
See full Press Release.
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