Review of corporate governance disclosure

News release
23 March 2009

Commission reviewing corporate governance disclosure

The Securities Commission is now reviewing reporting by issuers on their corporate governance as part of its ongoing financial reporting surveillance programme.

“Given the current financial climate investors need greater assurance that issuers have robust corporate governance arrangements in place. Investors can only have confidence in the market if such arrangements are fully disclosed,” Securities Commission Chairman, Jane Diplock, says.

“Good governance is the key to a successful, well managed corporate,” Ms Diplock says.

“The Commission’s review of corporate governance reporting will assess the current level and quality of disclosure and provide useful feedback to the market.”

The review involves assessing annual report and website disclosures of selected issuers against nine principles covering the core elements of good corporate governance. The principles are set out in a corporate governance handbook for directors, executives and advisers, published by the Commission in 2004.

As part of the process the Commission will write to issuers in cases where disclosure can be improved.

The Commission will also publicly report on the findings from this review.

ENDS

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