UpFront Kiwi corporate governance standards under study

An independent study into corporate governance standards in New Zealand’s public listed companies will be released next month by the Auckland-based Centre for Best Practice
The Centre’s director, Ashley Balls, says the study was prompted by his “concerns over the quality of corporate governance in New Zealand businesses”. He thinks it is the country’s first comprehensive study of local corporate governance standards.
The study will examine and report on corporate governance practice in listed New Zealand companies and provide detailed analysis against worldwide best practice. It will also generate stock-by-stock ranking, “to provide crucial information to investors”, he says.
“Undertaking of this study reflects the current business environment where business stakeholders (shareholders, investors, customers, staff) have come to expect inclusive and transparent operations from their business dealings,” says Balls.
“Stakeholders have become interventionist and are increasingly demanding credible, timely, high level information flows from company boards who are, more than ever before, being held accountable for their actions.
“The world has seen spectacular governance failures in Enron, Tyco, Parmalat, & WorldCom – and the list is growing almost daily. Investors are increasingly concerned about the lack of transparency in issues of governance in New Zealand listed companies.”
The study will provide benchmark, on company-by-company basis, and provide comparison against both existing regulations and guidelines in New Zealand and against worldwide best practice.