Last year the Corporations and Markets Advisory Committee was asked by the Government (see here, pdf) to undertake a project concerning directors' role and responsibilities. CAMAC was asked to examine, amongst other things, whether directors' performance would be enhanced by the introduction of guidance for directors, through, for example, a code of conduct or best practice guidance, by a relevant regulator, and if so what form that guidance should take. CAMAC published its findings and report this week: see here (pdf). The Committee rejected the case for a new code of conduct for directors but nevertheless stated that efforts to assist directors to understand their role and responsibilities should be pursued. The Committee also recommended that the Australian Securities Exchange should review its corporate governance principles and recommendations in the light of international developments.
It should be noted that CAMAC did not undertake empirical research to assess whether directors in Australia understand their role and responsibilities.
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