Australia’s Corporations and Markets Advisory Committee (CAMAC) yesterday did not recommend a new code of conduct for directors in its report on Guidance for directors, however does urge director to take guidance from Chartered Secretaries Australia (CSA) and other professional associations.
According to CSA’s chief executive Mr Tim Sheehy, “If directors took advantage of the full range of guidance available to them they would have a very thorough understanding of their roles and responsibilities. And this would be much broader than just their legal and compliance obligations.
“For example, CSA produces publications and good governance guides on virtually every aspect of director and board best practice including board composition, enterprise risk management, enhancing board performance and auditor independence.
‘It is hard to imagine that there is one aspect of director and board performance that is not fully covered in one form of another in the CAMAC report’s comprehensive listing of the full range of guidance activities available”
“It should be mandatory reading for all directors, aspiring directors and governance professionals,” Mr Sheehy said.
CSA also support CAMAC’s recommendation that the Australian Securities and Investment commission (ASIC) and other regulators assist directors to better understand their enforcement approach.
“If directors fully understood that regulators have a ‘zero tolerance’ for any wrongdoing I am sure that that would be a strong deterrent for corporate misconduct,” Mr Sheehy said.
