According Corporate Governance Processes †Myassignmenthelp.Com

Question: Discuss About The According Corporate Governance Processes? Answer: Introducation The Board of Ardent has liable for the fatal accident and subsequent crisis which has been occur due to a tragic accident in Dreamworld due to the accident the a number of patrons has been died when one ride has been faced an accident. Therefore the operator and owner of the Ardent Leisure Ltd has been faced several criticism due to the failure to the duty of care[1]. According to the Corporate Governance processes it helps to maintain the actual structure of the corporation which sets the rules, constitution, and system to process. It basically has formed for the maintenance and controlling the corporation[2]. The ASX has provided such rules under the mechanism of the company which helps to make the corporation in the promotional investors more confident while it applicable under the legislations[3]. In the Principle 7 of the Corporate Governance provides the legislations wgich helpsx to maintain and control every risks and hazards which has forms the rules for the oversight the risks, management and other internal control. Under the Principle 7 the Corporate Governance has helps and establishes the implementation and every annual review regarding the every issues and other controlling management in the risk factors[4]. It is also comes under the Corporate Governance that the Audit Committee is appointed while it is necessary to analysis the business risks in the risk management policies[5]. Here the risk has been identified through the internal control system of the board where the control the whole units and investment appraisal regarding the financial controls a d other procedures of the capital expenditure for the annual budgets and appraisal, due diligence which are the basic requirements of the companies. There are several risks gas been control under the Corporate Governance which includes credit risk, operational risk, liquidity risk, equity, cyber risk, fraud risks and security risk where they are control by the risk management systems[6]. The Ethical Standard Manuals has been set through the quality and integrity of Personnel which interfere in the controlling the business management[7]. While operating the risk in the management organizations the board rules and constitution is helps to operate, control and mentoring the risk factors. Ardent Leisure Ltd has their own set of managing authority where they work on the risk factors which are related with the corporation. However due to the sudden issues their management authorities have been criticized where a major fatal accident occurs and a number of patrons are died due to the major accident. Now the authority has failed to operate the board of management. According to the Principle 7 in the Corporate Governance, the management authorities have using the risk management where they are bound to control the whole operating business in the risk issues. The risk management authority has been applicable under the Principle 7 of the Corporate Governance. Now the Ardent Lei sure Ltd has bound to control such risk but they have been failed while operating the principles ethics in the risk oversight and management and internal control[8]. The Board of directors of Ardent Leisure Ltd has been criticized due the failure to managing the risk factors. The directors and other board members carry the responsibilities of the company[9]. Therefore if it has been found that the board has failed to control the risk management then the directors and other members of the boards are also held responsible for the failure of the management system[10]. The Australian Securities Exchange (ASX) which is the part of the Corporate Governance has legislate the Principle 7 for the reorganization and managing risk where the companies has been bound to control the whole constitution, rules and monitoring system of risk oversight and management and internal control[11]. Therefore the duty of the company is to maintain the duties where it is required to control the risk Management system under the corporate governance. Therefore when the duties of the company have been breached and cause the responsibilities for failure to manage the risk factors where any accident or damage has been occur. When the damage has been found under the corporate governance then the company will breach the principle 7. When the breach has been for the failure management of the corporate governance then it will order to pay the penalties for the damage and treated as compensation under the Corporation Act. Under the duty of the board the constitution of that particular company will applicable under the corporate governance. The takeover Panel Decision and Policies of the company are also parts of the Principal 7 of the Corporate Governance[12]. The directors are main authority of the boards where they are involved for controlling the management authorities under the Corporate Governance. Now under the corporate governance the directors are bound to control and operating the whole business with the authority of the corporation. Here in Ardent Leisure Ltd has faced with a major accident. The risks should be the material risks where the companies are bound to maintain the legal obligation along with the business and risk policies in the company[13]. However the Board Members and directors are bound control such operational risk management of the company risk policies. It has been found that Ardent Leisure Ltd has failed to control and monitor the legal obligation along with the safety and risk managements[14]. According to the scenario of the case the Board of directors has breach the Sec-180 of the Corporation Act. Therefore the liabilities of the board has been identifies for the board and along with the directors of the com pany. The risk management committee will have the obligation to looks for the damages and has the responsibilities to maintain the obstacles as per the Corporate Governance[15]. When the damage has been occur due to failure of the terms of the Corporate Governance then they should pay the compensation for breach the duty of care as directors where the risk and controlling policies are need to maintain. The Board will accommodate the whole issues with the board members along with the directors and the company. They also review the entity of the risk management and process the safety management with the insurable risk association of the company[16]. according to the Corporation Act the Directors are the member of the Board ad has the equal share of the holders of the company. Therefore the Corporate Governance has provides such constitution for the directors to follow such rules and duties. Therefore the directors are willing to perform the several duties and diligence where they must not breach their duties. However due to the negligence by the directors if the duty cares not always make the financial harms for the company[17]. The directors owned the general duty of care which must be reasonable care for the company by the directors. They must take every general duty which includes the financial stability, employment hazards, safety and securities of the employees and along the care of the company is every issue[18]. Where the duty of care has failed to make the improvement with the basic general obligations of the directors which mot involves with any contravene other legislations or constitution under the Corporate Governance. The degree of skill is also required where it relates with the objective measurements and other issues regarding the directors duty[19]. Regarding the statutory duty of care is also the part of the duty of care which act with diligence. Here a reasonable person must exercise the performance as a director of the company. The constitution of the corporate governance has been set where the directors are must not breach such statutory duty of care. However, it has been also important that if the breach has been occur where the director will face various obstacles regarding the legal obligations. Therefore the Civil Penalty has been applicable according to the breach of the duty of the directors. Therefore the Corporate Governance has been also provided several defenses which can be used by the directors when they has been subjected for breach of the duties under the Corporation Act. The business judgment rule, reliance defense and delegation defense are the most common defenses can the directors may use when they are facing the allegation of breach the duty of care[20]. Now regarding the case study of Ardent Leisure Ltd has been faced with the major tragedy of accident where several people have died[21]. Therefore tragic accident has affected the reputation of the company where the breach of duty of care of the directors has been related. It is also important to state that the board and the shareholder of the company the director also owns the duty toward the company and protects the safety issues with the company[22]. When the company faced the damages for the failures of the risk management then it is important to prove the breach of duty of care of the directors. Here the Corporate Governance has also applied the penalty provisions where the directors are bound pay the compensation. The financial harm is one of the major issues in the risk management program. The directors are must not breach the duty of care and diligence towards the company as they are board members and equal shareholders of the company[23]. The section 1317E of the corporation Act provides the penalty section for the breach of the duty of care[24]. According to the case study, Ardent Leisure Ltd has been alleged by the Corporate governance for the fatal accident and subsequent crisis. After the tragic accident at Dreamworld a number of patrons have been died[25]. As they has been criticized for failure to maintain the risk management systems. The Corporate Governance has been alleged that the board of Ardent Leisure Ltd not able to control the safety issues and controlling the risk hazards. It has been found in the ethics of the Corporate Governance the good corporations always make the cooperation along with the promotional investor confidence under the Australian Securities Exchange (ASX)[26]. It has provides the ability to work with the good governance where any issues has been found. However in this case scenario the Principle 7 of the Corporate Governance has provides such reorganization which helps to manage the risk issues of the corporation where it is must to define such rules and controlling system of risk oversight a nd management and internal control. The risk managements has been corporate in the corporation where it helps to identifies the risk hazards and take appropriate care resolve the issues trough the involvement of the Corporate governance[27]. As the directors are the part of the corporate governance and if any issues have been identified regarding the risk policies then it is the duty of the corporate governance of the Principles 7 of the ASX principles of Good Corporate Governance. Therefore the hazards and risk factors should identify according to the good corporate governance[28]. When any breach has identified by the governance then it s also required solving such issues. Therefore the entity of the risk management helps to process the safety and risk management under the process of corporate governance where the safety management with the insurable risks association with the company. The board or a committee of the board should review the entitys risk management framework at least annually to satisfy itself that it continues to be sound and disclose, in relation to each reporting period, whether such a review has taken place. Therefore it is important for the boards were the Board of the Ardent Leisure must preview all the risk issues and process according to the solving of the risk hazards[29] Reference Ali, Searat. "Corporate governance and stock liquidity in Australia: A pitch." Journal of Accounting and Management Information Systems 15.3 (2016): 624-631. ArAs, GlEr. A handbook of corporate governance and social responsibility. CRC Press, 2016. Beekes, Wendy, Philip Brown, and Qiyu Zhang. "Corporate governance and the informativeness of disclosures in Australia: a re?examination." Accounting Finance 55.4 (2015): 931-963. Beekes, Wendy, Philip Brown, and Qiyu Zhang. "Corporate governance and the informativeness of disclosures in Australia: a re?examination." Accounting Finance 55.4 (2015): 931-963. Bottomley, Stephen. "What is corporate law?." Routledge Handbook of Corporate Law (2016): Ciro, Tony, and Christopher Symes. Corporations law: in principle. Thomson Reuters, 2013.49. Cassidy, Julie. 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[4] Beekes, Wendy, Philip Brown, and Qiyu Zhang. "Corporate governance and the informativeness of disclosures in Australia: a re?examination." Accounting Finance 55.4 (2015): 931-963. [5] Ali, Searat. "Corporate governance and stock liquidity in Australia: A pitch." Journal of Accounting and Management Information Systems 15.3 (2016): 624-631. [6] Beekes, Wendy, Philip Brown, and Qiyu Zhang. "Corporate governance and the informativeness of disclosures in Australia: a re?examination." Accounting Finance 55.4 (2015): 931-963. [7] ArAs, GlEr. A handbook of corporate governance and social responsibility. CRC Press, 2016. [8] Ali, Searat. "Corporate governance and stock liquidity in Australia: A pitch." Journal of Accounting and Management Information Systems 15.3 (2016): 624-631. [9] Graw, Stephen, et al. Understanding business law. 2016. [10] Beekes, Wendy, Philip Brown, and Qiyu Zhang. "Corporate governance and the informativeness of disclosures in Australia: a re?examination." 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