Benchmarking

CSA has published the report of the inaugural survey of commercialised government entities, that is, government-owned corporations (GOCs), government business enterprises (GBEs), state-owned corporations (SOCs) and government trading enterprises (GTEs). Commercialised government entities at both state and Commonwealth levels were surveyed.

The main finding of the survey of governance practice in Australian commercialised government entities is that adoption of the corporate form has not resulted in the clarity this form is intended to provide as to the roles of the various parties in the governance framework, that is, the shareholder (government); the board of directors (governing body); and management. A fundamental question is whether there is a sufficient break between government and the entity it creates. The findings suggest that corporatised bodies owned by the government cannot be termed successful from a corporate governance perspective, while such lack of clarity as to role definition exists.

CSA conducts every two years a comprehensive benchmarking survey of governance and company secretarial practice in Australia listed companies. Responses from the top 200 listed public companies form the basis of the report, 2008 Benchmarking Governance in Practice in Australia.

This survey is designed by leading company secretaries and provides definitive statistical information and trends on governance practice in Australia. In 2008, new questions include:

• Do non-executive directors meet separately from executive directors?
• How many directors are independent as per the ASX Corporate Governance Council criteria and what is the primary reason for lack of independence if it applies?
• What was the response rate to notices seeking shareholder election as to how they wish to receive the annual report?
• What effect has this choice had on the concise annual report and on non-statutory shareholder reviews?
• What is the take-up of direct voting?