Corporate Governance and Corporate Control. The Market for Corporate Control in Australia

Dossier / Travail , 2014 , 12 Pages , Note: 1,7

Gestion d'entreprise - Direction d'entreprise, Management, Organisation

Particularly in the last decades the awareness of companies themselves and the public for good corporate governance increased dramatically. “Corporate governance is set to be the primary focus for the 21st” century. Most of the advanced economies have released new corporate governance rules and codes or company laws, especially as a result of the financial crisis in 2007 and the breakdown of several big companies worldwide. In Australia attention to corporate governance has grown after the „major corporate collapses and scandals of 2001 and 2002“, which included „five publicly traded (…) companies (...) [such as the] telecom company (One.Tel)“.

One.Tel ran out of money and collapsed in 2001. The company could not be revived, all assets were sold and the workers laid off. It has once been the fourth largest telecom company in Australia. The collapse of the Australian company is „associated with serious deficiencies in its corporate governance, including weaknesses in internal control, (…) management communication with the board, and poor executive pay-to-performance link.“

In the first part, this paper will provide you with background information on the terms corporate governance and corporate control. The second part outlines corporate control in Australia by elaborating on the market for corporate control, monitoring by shareholders, monitoring by non-executives and renumeration.

Inhaltsverzeichnis (Table of Contents)

• Raised awareness for corporate governance in Australia
• Corporate governance and corporate control
  • Definition and purpose of corporate governance
  • Definition and purpose of corporate control
• Corporate control in Australia
  • Market for corporate control
  • Monitoring by shareholders
    • Blockholders
    • Institutional Investors and Proxy Advisers
  • Monitoring by non-executive directors
  • Renumeration

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This paper aims to provide an overview of corporate control in Australia, focusing on the mechanisms used to monitor and control company performance. It examines the role of both internal and external monitoring systems in addressing the agency problem.

• The importance of good corporate governance in promoting company success and long-term survival
• The role of the market for corporate control as an external monitoring mechanism
• The various internal monitoring systems employed by shareholders, non-executive directors, and renumeration practices
• The impact of the agency problem on corporate governance and control
• The historical context of corporate governance reforms in Australia

Zusammenfassung der Kapitel (Chapter Summaries)

The first chapter introduces the growing awareness of corporate governance in Australia, highlighting key events that spurred reform efforts. The second chapter provides definitions for corporate governance and corporate control, exploring their respective purposes and the challenges posed by the agency problem. The third chapter delves into corporate control mechanisms in Australia, examining the market for corporate control and various internal monitoring systems, such as shareholder oversight, non-executive director involvement, and renumeration practices.

Schlüsselwörter (Keywords)

The primary focus of this paper is on corporate governance, corporate control, agency problem, monitoring mechanisms, market for corporate control, shareholder oversight, non-executive directors, renumeration practices, and the Australian context.

• Université: Munich Business School University of Applied Sciences
• Note: 1,7
• Auteur: Daniel Meidl (Auteur)
• Année de publication: 2014
• Pages: 12
• N° de catalogue: V320254
• ISBN (ebook): 9783668194915
• ISBN (Livre): 9783668194922
• Langue: anglais
• mots-clé: corporate, governance, control, market, australia