Small shareholders are being warned to read the fine print before they invest in small mining companies.
A report has shown that nearly half Australia's medium-size listed companies are not following corporate governance standards.
The report by the University of Newcastle and accounting firm BDO Kendalls shows that many companies do not have an independent chairman or a proper auditing process in place.
When insurance firm HIH collapsed and shareholders lost millions of dollars, it emerged that there were very few independent checks and balances done on the business. It highlighted the lack of corporate governance.
See full Article.
Posts
