Governance News 28 October 2020

60 minute read (PDF download) 27.10.2020 Mark Standen, Siobhan Doherty, Kate Hilder

COVID-19 Special Edition This issue of Governance News covers: a) key COVID-19 related developments; b) recent AGM results; c) opposition from some quarters to the government's proposals to permanently give companies the option to hold virtual meetings; c) key regulatory and financial services developments including ASIC's latest use of the product intervention power; and e) key risk and ESG related developments and more...

Boards and Directors Navigation Show below Hide below

Top Story | Sticking with who you know (regardless of performance)? A report from Ownership Matters questions whether the current approach to board recruitment and board refreshment is in the best interests of shareholders
In Brief | US News reports that the US State Department has suspended all diversity training to enable the Department and Office of Personnel Management to review the program content. This follows the release of September memorandum to the heads of executive branch agencies notifying them of the President's directive to 'cease and desist from using taxpayer dollars to fund…divisive, un-American propaganda training sessions'

Remuneration Navigation Show below Hide below

Goldman Sachs has agreed to pay a record fine to resolve various investigations into risk management failures in connection with 1MDB, the firm is also seeking to cut or clawback a total of $173 million from former executives/executives

Meetings and Proxy Advisers Navigation Show below Hide below

Top Story | Jumping the gun on virtual meetings?
Recent AGM results: Crown, Worley, Webject, IAG, Qantas

Disclosure and Reporting Navigation Show below Hide below

Quality reporting is more vital than ever: The FRC has called on companies to step up the quality of their reporting in light of the 'heightened need for high-quality disclosures as a result of the Covid-19 pandemic'

Regulators Navigation Show below Hide below

The Treasurer has ordered a four week independent review into ASIC expenses approval processes: ASIC Chair James Shipton has temporarily stepped down pending the outcome, ASIC Deputy Chair has resigned
APRA's appearance before the House of Representatives Standing Committee on Economics: Key takeaways from the hearing

Corporate Social Responsibility and Sustainability Navigation Show below Hide below

New evidence that behaving ethically delivers financial dividends? Research commissioned by the Ethics Centre has found that there is significant financial gain to be had by raising (even relatively slightly) ethical standards
In Brief | Making ESG a priority: McKinsey has published an interview with South32 Chair Karen Wood discussing her role as Chair and how it has been impacted by the pandemic, the steps South32 is taking to prepare for a low-carbon world and 'what makes the company's purpose and strategy resilient in unpredictable times'

Financial Services Navigation Show below Hide below

The Treasurer has ordered a four week independent review into ASIC expenses approval processes: ASIC Chair James Shipton has temporarily stepped down pending the outcome, ASIC Deputy Chair has resigned
APRA's appearance before the House of Representatives Standing Committee on Economics: Key takeaways from the hearing

Risk Management Navigation Show below Hide below

The government has launched a four week investigation into Australia Post and directed the CEO to temporarily step down from her role pending its completion
In Brief | Why weren't these issues picked up sooner? Writing in The AFR, Swinburne Law School's Helen Bird suggests that the recent scandals at Australia Post and separately at ASIC point to failure of the system of existing controls and oversight of the two bodies. 'The optics have been poor, but the governance of important government institutions and enterprises, including Treasury, has been shown to be poorer. What has let them down is a less-than-stellar approach to remuneration entitlements. Both the Australian public and the public purse are entitled to expect better' she writes
In Brief | The Bribery Prevention Network – a group of Australia's top ASX-listed companies, government organisations and civil society organisations - have launched a website offering free resources to assist Australian companies to manage bribery and corruption risks in domestic and international markets