Corporate Governance cheap essay writing service

Background

Star Limited is a thriving private, family owned business operating hundreds of “local” supermarkets across Australia. Star Limited is seeking to make the transition to a publicly owned entity whose shares can be traded on the stock exchange. Star Limited has decided to list because they hope to benefit from gaining exposure to retail and institutional investors, as well as access to a larger capital market. They also foresee this as an exit strategy if they want to exit their investments and retire. They have found that they meet the profit and asset tests of the ASX and believe they are ready to list in most other respects.

The company was founded by Mr Sam Star, who, although he has a very dominant personality, has an abundance of charisma which is regarded by many as the key to the company’s success.

Though he has a penchant for business strategy, he is not always the “details man”. Mr Star’s wife and best friend Mr Moon have played an integral role behind the scenes ensuring the day to day business is appropriately handled.

In accordance with the ASX’s advice on setting out on the road to listing and IPO (Initial Public Offering) on the ASX, Mrs Star and Mr Moon have appointed professional advisors relating to corporate structure, financial matters, marketing and distribution of securities, as well as communication strategies (relating to investor, public and government relations) and other legal matters.
They now seek to retain specialist advisors on the requirements for compliance with the 3rd Edition ASX Corporate Governance Principles and Recommendations 2014 once their company is listed on the ASX. They want to learn as much as they can about compliance and disclosure requirements relating to their first annual report once listed, and other key ways in which the corporate governance regulatory environment could affect them as a listed company. They are wondering whether the corporate governance compliance requirements will detract from the benefits of listing on the ASX, and they are concerned about any specific risks that they may have.

– Brief

You have been retained by Star Limited as a specialist Corporate Governance Advisor.

Your brief is to provide a paper to Star Limited at their next company meeting on corporate governance practice. You are required to:

• Outline how to maintain and establish good corporate governance once their company is listed, in accordance with the 3rd Ed ASX Principles and Recommendations 2014 and other relevant statements, law or guidance (and address any specific risks they may have).

• You should discuss the pros and cons of corporate governance – demonstrate the benefits to them as a listed entity in having good corporate governance, together with any downsides.

• You must assist your client to understand the importance and benefits of adhering to the ASX Principles and Recommendations by referring to the HIH case study. You may refer to other case studies as well if you wish (but your focus should be on HIH).

IMPORTANT NOTE:

• You are encouraged to incorporate the text of the Principles within the document rather than in appendices as it will assist the flow. If you include blocks of the text of the Principles within your assignment these will not be included in the word limit.

Enclosed:

– ASX Corporate Governance Council (2014): Corporate Governance Principles and Recommendations, 3rd edition, Sydney, 40p.
– HIH Royal Commission (2003): The Failure of HIH Insurance: A Critical Assessment, DCITA, Canberra vol.1 xiii-xiix pp. 259-305.

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