The report Guidance for Directors released by the Corporations and Markets Advisory Committee (CAMAC) recognises industry leadership and the need for an ongoing focus on good governance, AICD said today.
Responding to a request from the Minister for Corporate Law, the Hon Chris Bowen, CAMAC’s report acknowledges the range, extent and quality of existing guidance for directors.
John Colvin FAICD, Chief Executive Officer of AICD, said he welcomed the CAMAC report and was pleased that existing forms of guidance for directors (including AICD’s) had been commended.
AICD is committed to providing leadership on governance and director issues through education, information, guidance and by facilitating peer-to-peer interaction.
“It is essential that we continually update our guidance according to changing governance needs so that we can assist directors and boards to enhance their effectiveness for the benefit of their companies,” Mr Colvin said.
“We agree that a review of the ASX Corporate Governance Principles, taking into account the lessons learned from the financial crisis, is a timely and appropriate recommendation.
“We also share CAMAC’s view that director licensing and a code of conduct are not necessary,” he said.
CAMAC’s report should also be noted for its acknowledgement of the challenges facing directors and that achieving board diversity (a current priority for AICD) should be “matters of concern for each director and boards overall”.
While CAMAC’s report is said to be of particular relevance to publicly-listed companies, AICD believes the guidance cited is relevant to directors of any organisation with, or seeking to establish, a formal board and governance structure, including small to medium-sized enterprises.
Examples of AICD’s guidance for directors are listed within the report in Section 3.7.2 (page 38) and in Appendix 2 (page 89).
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The Australian Institute of Company Directors provides education, information and advocacy for company directors Australia wide, with offices in each state to cater for 26,000 members. Our members work in diverse corporations such as small-to-medium enterprises, the ASX200 corporations, public sector organisations, not-for-profit companies, large private companies and smaller private family concerns.