The recent collapses of one.tel, HIH and Harris Scarfe have once again brought the importance of good corporate governance practices into the headlines. While the lack of adequate corporate governance practices did not cause these businesses to collapse, it is generally acknowledged that lack of proper corporate governance practices did result in boards and shareholders not being fully informed, or informed early enough, about the true state of the financial affairs of the company.

Corporate governance is core territory for Chartered Secretaries Australia. CSA intends to campaign heavily in the coming months for greater acceptance of the importance of good corporate governance and what practices should be in place. Your responses will enable us to formulate a comprehensive policy stance and the extra time required would be greatly appreciated.

1. For listed public companies, what is your preferred option for the appointment of external auditors?

A. The current practice (by the board with no time limit)
B. Independent appointment for a secure number of years
C. Appointment by the board but on a rotation (say every three years)from a short-list of approved auditors
D. Other option

A     56%
B     14%
C     23%
D     7%

2. To avoid the potential for a conflict of interest, do you believe there should be a limit on the "other" services accounting firms could provide to their audit clients? Yes/No

Yes 53%
No 47%

3. Do you believe shareholders should elect a small, separate corporate governance board to deal with issues such as conflict of interest, nomination and election and remuneration of directors etc? Yes/No

Yes 13%
No 87%

4. Do you believe there should be a specified minimum set of skills that should be present on the board of every listed public company? Yes/No

Yes 54%
No 46%

5. In what ways can directors ensure that there is timely, transparent and accurate communication between management and the board?

Tim Sheehy
CHIEF EXECUTIVE