Each ASX Corporate Governing Principle is supported by several recommendations. If the board of a listed company decides that a recommendation is not appropriate for their company:
A)the company will immediately be suspended from listing.
B)the company must explain why it has not adopted the recommendation.
C)the company can just ignore the recommendation.
D)the company board of directors will be dismissed.

Question

Quizplus · Accepted Answer

The ASX Corporate Governing Principles require listed companies to disclosure their compliance with the recommendations. If a company decides it is not appropriate to adopt a recommendation, it must explain why this is the case. The explanation should be included in the company's annual report or on their website. Ignoring the recommendation without explanation could lead to a lack of transparency and risk reputational damage. Option A and D are not accurate and Option C is not in line with good corporate governance practices.

Each ASX Corporate Governing Principle Is Supported by Several Recommendations