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    Corporate Law Assignment Help

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    Corporate Law Assignment Help


    Corporate Law

    Part A

    Introduction

    Corporate governance can be termed as the procedures and the mechanisms in a company, which is implemented, for directing and controlling. Corporate governance fundamentally engages in harmonizing the wellbeing of the stakeholders of an organisation, such as customers, financiers, management, suppliers, shareholders, government and the society (Corporate Governance 2018 | Australia | ICLG, 2018). This assignment will focus on the legal aspects of a business in terms of corporate governance and will show the duties of the directors of a company and the leaders, executives and the officers. Their conduct would also be highlighted, good corporate governance and the policies related to the governance would be shown in detail too. Finally, the implications and recommendations would be shown so that it the topic becomes easy to understand. A company would be chosen for the project so that it becomes easy to highlight the different aspects in relation to the corporate governance of the organisations in Australia. The Corporations Act of Australia 2001 controls the corporate law, and all the tasks would be related to it. 

    Background of the study

    The Commonwealth bank would be taken into consideration for the sake of the project.  Commonwealth Bank is the leading bank of Australia, and it has its operations all across the globe. This company specialises in the financial services like retail marketing, institutional banking, superannuation, funds management, insurance, broking and investment. It is one of the companies that are listed on the Australian Securities Exchange and is based in Sydney, Australia (Commbank.com.au, 2018). The company mainly operates in Australia, New Zealand and some countries of Australia and it has almost 51800 employees all over the world. The Commonwealth Bank is an AU$26 billion company according to the reports of 2017, and its total assets was valued to be AU$976 billion (Commbank.com.au, 2018). The company operates in other countries through its subsidiaries. Some of the renowned subsidiaries are the ASB Bank, the Bank west, Colonial First State, the Commonwealth securities and the Sovereign Limited. The net income of the company is around AU$9.88 billion, and its total equity in the market is AU$63 billion. 

    Corporate Governance

    Meaning and Scope

    Corporate governance is the methods and manner in which a company is governed. It means the way through which the stakeholders’ interests are covered by the process of direction and management inside an organisation. Corporate governance is the duty of the directors of the company and the concerned committees so that the stakeholders of a company can benefit from the actions taken by these people. It is the interaction of the specific peoples of the company to shape the performance of the organisation and to increase the profitability (Wrighthassall.co.uk, 2018). 

    According to the Corporations Act, 2001, corporate governance settles with the approach the contributor of investments in a company assures themselves of getting a reasonable profit for their speculation. Corporate Governance noticeably recognizes the proprietors and the supervisors. The directors are the one responsible for the decision-making of the company. In present-day companies, the tasks of proprietors and supervisors ought to be characterized. It shows the ways in which the decisions can be made in the authority of the Board of directors (Brefigroup.co.uk, 2018). Corporate Governance helps in the flexibility and the transparency of the company and ensures a balanced fiscal development. 

    Good governance- Director’s Duties

    In the modern corporate world, corporate governance has progressed toward becoming a popular expression. The legislature has set extraordinary accentuation of the way in which, corporate bodies can be administered and in which the top workers are boosted to the supervision of the boards in terms of gender sex and race. The main tasks of the directors of the companies are to contribute in the decision making of the company and assist the managers and the leaders of the company to act for the welfare of the company. During the decision making process of the company, the directors have to understand the needs of the company and apply the strategies according to these needs (Managementstudyguide.com, 2018). It is important for the company directors to understand the role and responsibilities so that the shareholders benefit from the decision making the process of the company. The board of directors should be accountable for conducting the annual general meeting so that the decision that has been taken by the board can be shared with the shareholders of the company and investment can be increased. 

    The board of directors must act within the powers (Economics Discussion, 2015). The company must follow all the rules and regulation stated in the Corporations Act of 2001, and it has to be ensured by these people that the company are not involving themselves in any malpractices or illicit activities. The board of directors have to promote the success of the company through the regular company meetings and the yearly annual meeting so that the success can be made available to their stakeholders (Commbank.com.au, 2018). Another major duty of the board of directors is to resolve the conflicts of interests of both the employees and the stakeholders of the company in any situation. These people must keep the different laws in mind so that the company do not face any future problems. Firstly, it has to be seen that the company follow the terms of the Equal Pay Act and the Non-discrimination Act. If any further issues arise, the company have to be solving all the problems and follow the terms of the Corporations Act 2001. 

    Good Governance- ASX governance

    ASIC put into effect the Corporations Act and inflicts communal and illegal consequences for violations of the Listing Rules. The Australian Securities and Investment Commission is the corporate regulatory agency and the company must be collaborating with the rules and regulations of the law so that the development and the betterment of the company can be ensured (Stout and Blair, 2017). This law helps to receive, process, and gather information about the companies to the public and the board of directors must follow all the rules and regulations so that the company can sell its shares in the Australian Stock Exchange (ASX) without any problem (Tricker and Tricker, 2015). The ASX framework that has been laid down by in Corporations Act, 2001 are as follows:

    a Establish strong frameworks for administration and supervision: A company ought to build up and unveil the roles and obligations laid down by the board members and the administration department and the way in which their execution is observed and assessed. 

    b Configuration the board to include esteem: A company ought to have a body of a proper size, arrangement, aptitudes and promise to empower and to release its obligations adequately. 

    c. Act morally and capable: The board of directors must take care that the company acts morally and dependably (Aguilera et al., 2018). 

    d Safeguard integrity in corporate reporting: A company ought to have formal and thorough procedures that can autonomously check and protect the respectability of its corporate reporting. 

    e Make auspicious and adjusted divulgence: A company should make appropriate and adjusted disclosure of all issues in relation to it that a sensible individual would hope to affect the cost or estimation of its securities (Dimopoulos and Wagner, 2016). 

    f Regard the privileges of equity holders: A company should admire the privileges of its “security holders” by giving them proper data and competencies to enable them to practice the rights viable. 

    g Perceive and oversee risks of the company: A company ought to set up an effective risk-administration system and intermittently survey the viability of that structure (Corporate Governance Principles and Recommendations, 2018). 

    h Compensate reasonably and mindfully: A company should compensate adequately to draw in and hold skilled executives and plan its compensation to pull in, hold and motivate the senior administrators to adjust their interests to the production of significant values for the stakeholders.

    Conclusion

    From the above part of the project, it can be depicted that corporate governance is useful for every company in the world, especially the ones that are listed on the stock exchanges. It has been seen that corporate governance can significantly engage in the betterment and the interests of the stakeholders or it can result in a failure, just like that in a case of the CBA. This part of the assignment has focused on the legal aspects of business and the benefits of the corporate governance, and have shown the duties, roles and responsibilities of the board of directors of a company. The corporate governance policies have been shown in detail and have been related to the case of the Commonwealth Bank, and it has been shown why the corporate governance policies have failed in the case of the company. 

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