Premium Essay

Corporate Givernance

In: Business and Management

Submitted By markwoodfield67
Words 3037
Pages 13
Subject title = Corporate Governance

Executive Summary
Most successful organisations adhere to corporate governance principles, and as their environments change, so should the system in order to adapt and improve. This paper reviews the corporate governance aspects of Scouts Victoria.

As an organisation with a hybrid of volunteer and paid staff, Scouts Victoria provides an interesting insight of how corporate governance methodologies can be adopted.
The organisation is well advanced in its values and policies, and has established policies around board appointments and organisation management. While recognising this, there are also opportunities for improving processes, giving greater community confidence that one of their iconic volunteer organisations is professionally managed and focused on delivering well-structured programs for the youth of Victoria.

Contents Introduction 3 Principles of Good Governance in the Not For Profit Sector 3 Regulatory Framework 3 Role and Responsibilities - The Board's Effectiveness 4 Board Composition – the right people 5 Vision and Strategy 6 Recognition and Management of Risk 6 Volunteer Training 6 Organisational Performance 7 Board Effectiveness 8 Integrity & Accountability 9 Organisation Building 9 Culture & Ethics 9 Engagement 10 Conclusion 10 Recommendations 11

The idea of Corporate Governance has been in existence since the days of the spice trade and monopolies of the trading companies that opened trade between Asia and Europe in the 1600s and beyond.

The phrase became more popular in Australia during the 1980’s & 1990’s after the excesses and failures of organisations such as Bond Corp, and Quintex.
With the advent of the Enron crash in 2001, as well as the global financial crisis in 2007, most countries with advanced economies have...

Similar Documents

Premium Essay

Finance Week 2 Essay

...Jamie Lyons Finance W2 4-1 Questions Annuity-A financial product sold by financial institutions that is designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments to the individual at a later point in time. Annuities are primarily used as a means of securing a steady cash flow for an individual during their retirement years. Lump-sum payment- A one-time payment for the total or partial value of an asset. Cash flow- A revenue or expense stream that changes a cash account over a given period Uneven cash flow stream- Any series of cash flows that doesn’t conform to the definition of an annuity is considered to be an uneven cash flow stream. 4-1 problem Solve for FV 10,000 × (1.10)5 power 10,000 × 1.6105 16,105.10 4-2 At = A0 * (1+r/100m)^mt At= 5000 A0 =? r= 7%, m = 1 t = 20 Answer =$1,292.10 4-3 (FV) = 1,000,000 (PV) = 250,000 (n) = 18 years (i) = ? 1,000,000 = 250,000 (1 + i)15 power = .801% 4-4 i = 6.5% n =? PV = 1000 FV =2000 1000 = 2000 / (1+0.065)n power (1.065)n power=2 I put 11 in for n 11.01 4-6 S = R(((1 + i)n - 1) / i) *(1 + i) $300(((1 + .07)n - 1)/.07) S = $1725.22 * 1.07 S = $1845.99 Each year – $1,725.22 Due- $1,845.99 4-8 Financial calculator used N = 60 I = 1 PV = -20000, FV = 0 PMT = $444.89 EAR formula = (1.01)12 – 1.0 = 12.68%. NOM% = 12 P/YR =12 EFF% = 12.6825% PMT= $444.89 EAR= 12.6825% ...

Words: 733 - Pages: 3

Premium Essay

Mcbride Concepts

... |Reference to Concept in Reading | |Shift in Corporate Power |By appointing a board that is approved by the investor, this effective shift|“…But, in the last decade, and especially | |from CEO to Stakeholders |will occur. In today’s business environment the board plays an active role |in the past five years, boards of directors| | |in decisions as opposed to simply providing rubber stamps. |of large publicly traded corporations have | | | |begun to shed their passivity and | | | |dependence. The evolution of boards from | | | |managerial rubber- stamps to active and | | | |independent monitors has been in large part| | | |the result of efforts to address or avoid | | | |serious problems with corporate performance| | | ...

Words: 681 - Pages: 3

Premium Essay


...Year up to 250cc CONTENTS Management Team ............................................................................................................................................... 3 Chairman’s Letter ................................................................................................................................................... 4 Management Discussion and Analysis .......................................................................................................... 7 Corporate Governance ......................................................................................................................................15 General Shareholder Information .................................................................................................................21 Directors’ Report ..................................................................................................................................................25 Report on Corporate Social Responsibility...

Words: 43384 - Pages: 174

Premium Essay


...Chapter 12 Leverage and Capital Structure Solution to Problems P12-1. LG 1: Breakeven Point–Algebraic Basic FC (P − VC) $12, 350 Q= = 1, 300 ($24.95 − $15.45) Q= P12-2. LG 1: Breakeven Comparisons–Algebraic Basic (a) Q = FC (P − VC) Q= Q= Q= $45, 000 = 4, 000 units ( $18.00 − $6.75) $30, 000 = 4, 000 units ( $21.00 − $13.50 ) $90, 000 = 5, 000 units $30.00 − $12.00 ) ( Firm F: Firm G: Firm H: (b) From least risky to most risky: F and G are of equal risk, then H. It is important to recognize that operating leverage is only one measure of risk. P12-3. LG 1: Breakeven Point–Algebraic and Graphic Intermediate (a) Q = FC ÷ (P − VC) Q = $473,000 ÷ ($129 − $86) Q = 11,000 units 302 Part 4 Long-Term Financial Decisions (b) Graphic Operating Breakeven Analysis 3000 Profits Breakeven Point Sales Revenue Total Operating Cost 2500 2000 Cost/Revenue ($000) Losses 1500 1000 500 Fixed Cost 0 0 4000 8000 12000 16000 20000 24000 Sales (Units) P12-4. LG 1: Breakeven Analysis Intermediate (a) Q = $73, 500 = 21, 000 CDs ( $13.98 − $10.48) (b) Total operating costs = FC + (Q × VC) Total operating costs = $73,500 + (21,000 × $10.48) Total operating costs = $293,580 (c) 2,000 × 12 = 24,000 CDs per year. 2,000 records per month exceeds the operating breakeven by 3,000 records per year. Barry should go into the CD business. (d) EBIT = (P × Q) − FC − (VC × Q) EBIT = ($13.98 × 24,000) − $73,500 − ($10.48 × 24,000) EBIT = $335,520 −......

Words: 5363 - Pages: 22

Premium Essay

Business Case Study

...Abstract Purpose – The purpose of this paper is to extend our understanding of corporate governance, social issues and capital markets by distinguishing between the socially responsible investing phenomenon and mainstream investing with respect to social issues. It attempts to clarify the domain by casting it in the theoretical frame of prospect theory and mental modeling. With a qualitative study done among large institutional investors in the Canadian securities industry, the article derives a proposed mental model of these institutional investors’ cognitive model of social issues as they impact investments. Findings – The institutional investors in this study know exactly where value is derived from social investments suggesting that there may be more alignment between directors, investors and societal expectations than has been previously suggested. Research limitations/implications – The limited number of organizations in the study reduces the generalizability of the findings. Practical implications – Managers and directors must have an understanding of how shareholder value and responsibilities intersect. In our research, we have found that these executives positioned their firms as leaders on the social responsibility front. Interestingly, their major shareholders also understood how responsibility and shareholder value intersected and as a result, financial performance was not sacrificed. Originality/value – The findings fromthis research shed light......

Words: 456 - Pages: 2

Premium Essay


...The board of directors, and its audit committee, can be an effective [4] corporate governance mechanism. [a] Discuss the pros and cons of allowing inside directors to serve on the board. Describe typical responsibilities of audit committees. Professional standards note that the board of directors and its audit committee are an important component of an entity’s control environment. Those standards (e.g., see Appendix B in AU Section 314) note that “an entity’s control consciousness is influenced significantly by the entity’s board of directors or audit committee.” Frequently, the board of directors is viewed as the top internal control mechanism responsible for overseeing the actions of top management on behalf of the shareholders. Because shareholders are generally not able to monitor management on a day-to-day basis, they delegate that responsibility to the board of directors. The board is responsible for raising and pursuing difficult questions with top management. Because the board is responsible for monitoring entity activities, it is important to include insiders on the board to ensure that the board has the necessary information about company transactions and activities to make decisions that are in the best interests of shareholders. Thus, most company boards of directors include several members from the company’s top executive team as full members of the board. Those members help provide necessary information to the board as it makes key decisions.......

Words: 438 - Pages: 2

Premium Essay

Ben and Jerry's Financial Audit

...Financial Audit Liquidity: Ben & Jerry’s seem to have low risk compared to the industry standards; they have no trouble meeting short-term obligations. The CR (B&J = 3.59; I =2.3) and QR (B&J = 2.66. I =1.1) show that they are currently at a lower risk than the overall industry. However, this difference is explained when looking at accounts receivable. It seems as though the A/R collection days are much higher than the industry (B&J =29.2, I =16.4). This may be a result of Ben & Jerry’s having friendly relationships with its local dealers and societal approach. There seems to be significant room for improvement here, if Ben & Jerry’s can start collecting A/R quicker, while still being less demanding than the industry standards. Net working capital has increased every year, with a significant jump from 1992 to 1993. Even though the rest of the industry spends vast amounts of resources on marketing and advertising, the lack of paid marketing doesn’t seem to be affecting Ben & Jerry’s. Their sales have also increased every year and they seem primed for continuing sales with their new lines of lower fat frozen yogurt items. Despite slow returns on A/R, Ben & Jerry’s liquidity seems to be acceptable at this time. Capital Structure: Ben & Jerry’s has very little capital structure risk compared to the industry; which indicates its cost of capital is relatively low. Both D/E (B&J = .659; I =.903) and D/A (B&J =.40; I =.46) are well below the industry average. There...

Words: 895 - Pages: 4

Premium Essay

Explaining Basic Accounting Concepts and Business Structures

...Explaining Basic Accounting Concepts and Business Structures The Hierarchy of Generally Accepted Accounting Principles identifies the sources for the accounting standards and principles. These sources include “FASB Standards, Interpretations, and Staff Positions; APB Opinions; and AICPA Accounting Research Bulletins” (Kieso, Weygandt, & Warfield, 2007, p. 12). When companies prepare financial statements in accordance with GAAP, they sometimes run into situations in which some standards do not address a certain situation or two standards may conflict. Because of this the Statement of Accounting Standard Number (SAS) 69 established a hierarchy to follow. The hierarchy forms a kind of order for GAAP rules and procedures used in preparing financial statements. The hierarchy is made up of four categories that have a descending level of authority. For example, “Category A consists of the following principles: FASB Statements of Financial Accounting Standards, FASB Interpretations, APB Opinions, and AICPA Accounting Research Bulletins” (eNotes, 2011, para. 5). Because the categories are in descending order, category A would take precedence over the other three categories. The FASB identified certain qualities of accounting information that make it effective for making decision. For accounting information to be considered effective it should possess these four qualities: relevance, reliability, comparability, and consistency. The information should be relevant enough......

Words: 651 - Pages: 3

Premium Essay

Southern Homecare Cost of Capital Case 16

...Description The model takes much of the busywork out of the case, so it enables students to spend more time on interpretation and evaluation. Like most case models, the student and instructor versions differ only in regards to the input data. The instructor’s version contains the complete base case inputs, while these inputs are zeroed out in the student version of the model. The model uses market data relevant to both the business’s debt and equity as inputs to estimate the costs of debt and equity. Both YTM and YTC costs of debt are estimated, while the cost of equity is estimated using the CAPM, DCF, and Debt cost + Risk premium methods. Note that students must use judgment regarding which component cost estimates should be used in the corporate cost of...

Words: 5558 - Pages: 23

Premium Essay


...In 2001, the nation was rocked by the collapse of Enron, a multibillion dollar corporation that employed thousands of people and had affiliations right up to and including The White House itself. It is important, in starting, to understand how Enron rose to power and later imploded. Enron itself came to be born as the result of a 1985 merger of Houston Natural Gas and InterNorth-a Nebraska based gas pipeline company. Its most valuable asset and the largest source of honest income, the 1930s-era Northern Natural Gas, was eventually purchased back by a group of Omaha investors, who moved its headquarters back to Omaha, and is now a unit of Warren Buffett's MidAmerican Energy Holdings Corp. NNG was put up as collateral for a $2.5 billion capital infusion by Dynegy Corporation when Dynegy was planning to buy Enron. When Dynegy looked closely at Enron's books, they backed out of the deal and fired their CEO, Chuck Watson. The new chairman and head CEO, the late Daniel Dienstbier, had been president of NNG and an Enron executive at one time and was forced out of Enron by Ken Lay. Dienstbier was an acquaintance of Warren Buffett. NNG continues to be profitable today. As was later discovered, many of Enron's recorded assets and profits were inflated or even wholly fraudulent and nonexistent. One example of fraudulent records was in 1999 when Enron promised to pay back Merrill Lynch & Co. investment with interest in order to show profit on its books. Debts and losses were put into......

Words: 1190 - Pages: 5

Premium Essay

Financial Management

...Lesson # 1 Financial Management: Introductory Notes and Words Concepts of Finance and Financial Management Financial Management refers to the proper management of finance functions of an enterprise or organization. In other words, financial management is concerned with the financial decision-making and other financial aspects. Thus, financial management involves financial planning, financial organization, financial coordination and control, financial reporting, financial mergers, combinations and acquisitions, insurance and tax management etc. Financial planning is concerned with the act of deciding in advance the financial activities that are essential if the enterprises are to achieve their financial goals and objectives. These financial activities mainly consist of properly estimating financial needs; selecting the proper sources of finances; procuring the requisite funds; proper utilization of the funds and custody and safekeeping of funds. Financial organization is the grouping of the finance functions into various divisions, departments, sections and sub-sections of the enterprises for their proper and efficient performance. That is, financial organization deals with the proper allocation of the finance functions amongst the various financial executives. Financial coordination and control deal with the proper adjustment of the finance function and evaluation of the same in relation to the predetermined standards. Financial reporting is the proper collection and...

Words: 2347 - Pages: 10

Premium Essay

Accounting Assignment

...Date issued: 4 July 2011 The Centro Case has shone the spotlight on the duties of directors after the court found in favour of the Australian Securities and Investments Commission (ASIC) and ruled that the directors breached their duty of care in the preparation of the company’s financial statements. As the reporting season begins, members who are directors, chief financial officers or who are involved in preparing financial statements, will need to carefully consider the key messages in this judgment in the coming weeks. On Monday 27 June, Justice Middleton of the Federal Court handed down his decision in ASIC v Healey [2011] FCA 717 (the Centro Case). He found that each director knew of the interest-bearing liabilities and debt guarantees, and should have been aware of the relevant accounting principles that would have alerted each director to the apparent error in the proposed financial statements. Each director could, and should, then have made enquiries to fulfil the steps required of them. This decision focused on financial accounts, signed off by directors in 2007, which were found to have failed to disclose billions of dollars of short-term debt. Directors and other relevant parties will need to consider the key outcomes of the judgment as they prepare, scrutinise and settle company financial accounts. The judgment affirms that, while board members do not have to be experts in accounting standards, they must carefully scrutinise financial statements. While......

Words: 337 - Pages: 2

Premium Essay

Anthesis on People

...Syllabus FINA 3320 Fall Semester 2012 Robert Puelz, Professor 390 Crow Building OFFICE PHONE & VOICE MAIL: 214-768-4156; FAX 214-768-4099 CLASSROOM : Georges Auditorium e-MAIL ADDRESS: OFFICE HOURS: 1:00 p.m. to 2:00 p.m., Monday and Wednesday; and by appointment. HELP LABS: see “Lab and T.A.s schedule on our Blackboard site REQUIRED TEXTS: Ross, Westerfield and Jordan (RWJ), Fundamentals of Corporate Finance (Alternate Edition), 10/e , Note: Custom book based on RWJ edition 10/e available at SMU Bookstore only Malkiel, Burton G. (Malkiel), A Random Walk Down Wall Street, 2011, Norton Publishers. RECOMMENDED READING: Wall Street Journal and the business section of the Dallas Morning News. OTHER RESOURCES: The use of a business function or financial calculator is required. The Hewlett-Packard 10-B II and Texas Instruments BA II Plus are popular choices. The HP-12C is my personal choice mostly because it has stood the test of time. Beyond your operating manual, we will support each of these calculators if you have questions. CLASS ATTENDANCE AND WEBSITE: One of the best things about teaching and learning is the interaction between us. That can only be accomplished when you attend. I expect you to attend class and use a name tent. Also important to our class is our website. You’ll need your SMU i.d. for both your......

Words: 2206 - Pages: 9

Premium Essay

Washout: the Founder’s Tale and the Investor’s Tale

...According to the Exhibit 1, I think the fiduciary duties of directors is that in making a business decision, the directors of a corporation acted on an informed basis, in good faith and in the honest belief that the action taken was in the best interest of the company. If the company is sold for a price greater than the downround valuation and the new preferred stock gets a 400 percent return plus its share of the remaining equity while the common stock gets little or nothing, the directors may be sued personally for breach of fiduciary duty.(website: In this case, capitalization consist of multiple series of preferred stock while founders held the common stock, therefore it will be hard to secure financing. At first, two engineers invest $60000 to found the Alantec Company. However, within six months, they needed capital to keep their enterprise going, so 1.5 million was invested. In 1989, the reduced revenue and cash flow have created an immediate need for cash, and TA felt it is too risky to be supported any longer by a single venture investor. But at that time, no one was interesting to put their money in Alantec at $0.88 per share, so they drop it at $0.30 per share. This action, in my view, can be seen as the best interests of corporation. If not doing this, the company may suffer in bankruptcy. If Alantec bankrupt at that time, not only the founders, but also the VCs will suffer from it. So......

Words: 278 - Pages: 2

Premium Essay


...This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: Taxing Multinational Corporations Volume Author/Editor: Martin Feldstein, James R. Hines Jr., R. Glenn Hubbard, Eds. Volume Publisher: University of Chicago Press Volume ISBN: 0-226-24094-0 Volume URL: Conference Date: April 19, 1994 Publication Date: January 1995 Chapter Title: Corporate Taxes and the Cost of Capital for U.S. Multinationals Chapter Author: Joosung Jun, James R. Hines Jr., R. Glenn Hubbard Chapter URL: Chapter pages in book: (p. 21 - 28) 3 Corporate Taxes and the Cost of Capital for U.S. Multinationals Joosung Jun 3.1 Introduction Tax rules affect the ability of U.S. firms to compete in foreign markets with local and other foreign firms. The primary channel through which taxes exert this influence is by changing the cost of capital. The competitive ability of firms that face different costs of capital depends on how capital intensive they are and how sensitive the demand for their product is to the price. This paper does not attempt to look at specific products, but does estimate how tax rules alter the cost of capital for U.S. firms and competing firms in a variety of foreign markets. Past comparative studies of the cost of capital have been mostly concerned with domestic investment between countries. A typical finding of these studies is that, during the past......

Words: 3085 - Pages: 13