The ASX Corporate Governance Council has released consultation materials for a proposed fifth edition of the Corporate Governance Council Principles and Recommendations.
The draft contains new recommendations or updated disclosure expectations related to:
- Disclosure of board skills and diversity, and related processes.
- The interests of a listed entity’s key stakeholders and how the entity engages with them.
- Non-executive directors not receiving performance-based remuneration or retirement benefits.
- Performance-based remuneration clawback provisions for senior executives.
- Disclosure of the outcomes of code of conduct breaches (on a de-identified basis).
- Disclosure of verification processes for periodic reports, as well as auditor tenure review processes.
- Disclosure of a listed entity’s material risks, as assessed by the entity, rather than specific material environmental and social risks.
It is currently envisaged that the Council will release the final version of the fifth edition of the Principles and Recommendations early in calendar 2025, to potentially take effect for financial years commencing on or after 1 July 2025.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
