Australia has for the first time been judged against its peers in Asia for corporate governance, the rules and checks and balances by which companies are run.
Corporate Governance Watch, a collaboration between investment house and broker CLSA and the Asian Corporate Governance Association, analyses and rates 1,047 Asian companies and 12 key Asia-Pacific markets.
Here’s how the countries rank, according to the 10th report by Corporate Governance Watch:
Jamie Allen, secretary general of the Asian Corporate Governance Association, says Australia at 78 is well ahead of its nearest rival Singapore at 67.
“But Australia isn’t perfect,” he says.
“Shareholder rights are robust, but urgent fixes are needed in minority protection in reverse takeovers, voting by poll.”
And Australia gets lower scores for enforcement, regulatory funding and anti-corruption efforts.
However, Australia’s regime is broader, deeper and more developed than its counterparts in Asia.
It gets high scores for corporate reporting, political/regulatory environment, accounting/auditing and corporate governance culture.