Tuesday, January 16, 2007
ASX Seeking Comments on Outcomes v. Practices Based Corporate Governance Principles
The Australian Stock Exchange is seeking comments on whether the ASX Principles should continue to be based on practices rather than outcomes. See the posting on the ASX website from Shann Turnbull of the International Institute for Self-governance here.
Turnbull's argument is that check-the-box regulations are less effective than outcomes based approaches. He argues that if an entity can prove that its approach results in good governance, which he defines as "the ability of corporations to maximize their ability to operate on a socially acceptable self-governing basis to minimize the need for government and its regulators to become involved."