Corporate Governance is Important for your Clients
Accountant's Minute 153
Welcome to Accountants Minute.
Corporate governance is important for your clients. That is why our associated company, ESS Small Business, is presenting the Corporate Governance Network, which commences on Tuesday 29th May 2018.
Why is Corporate Governance Network important for your clients? I really believe that company directors of small/medium enterprises need to develop a better understanding of the Corporate Law and other business issues that relate to performing the duties of a company director.
Similar requirements also apply to those of your clients who are involved as committee members in not-for-profits, charities or sporting organisations.
There is a need for directors and committee members to be aware of the legislation; to understand best practice and to understand the ethics of running business entities, whether they’re companies, not-for-profits, charities or sporting organisations.
This is why we’re presenting this series which hopefully, will be able to be developed next year into a series that you (accountants), will be able to present to your clients if you wish.
In the first instance, directors are responsible for “setting the scene”, for deciding on the “corporate culture” and planning the strategies for a business. They then need to appoint a chief executive officer or general manager to operate the business. It’s then very important that the directors or committee members implement policies and processes whereby they can monitor what is happening within the business.
If there are any lessons so far, coming out of the Bank Royal Commission, it is that there is an expectation that directors of companies and committee members of not-for-profits, charities or sporting organisations, will implement processes whereby they’re able to continue to monitor the actual performance, not just accept without any independent review, what is being told to them.
This means that they need to develop an awareness of what is happening on all things legal, whether it’s the Companies Act, the Association Incorporations Act, Taxation, Workplace Health & Safety, Fair Work Australia, Environmental Laws, Privacy Act or overseas workers’ rules to work in Australia.
