At the start of a new financial year, all eyes are turning to the ASX-listed companies with a reporting deadline of June 30, who – for the first time - are required to fully disclose the effectiveness of their risk management and internal control frameworks, in line with ASX’s revised Corporate Governance Principles and Recommendations (CGPR) of 2007.

The ASX Corporate Governance Council's framework, which took effect from the beginning of 2008, outlines eight principles – each of equal weight - for good corporate governance. In addition to principles around Board composition, company reporting, shareholder rights and the management of risks and rewards, is the stipulation – in Principle 3 – that companies should actively promote ethical and responsible decision-making.

The Principle recommends that “A code of conduct supported by appropriate training and monitoring of compliance with the code are effective ways to guide the behaviour of directors, senior executives and employees and demonstrate the commitment of the company on ethical practices. Companies should ensure that training on the code of conduct is updated on a regular basis.” **

ASIC has recently announced that its review of the recent reports from 100 companies has highlighted “additional issues” for the upcoming reporting period. This, in addition to its warning that it will be reviewing the reports of a further 350 listed and unlisted companies, should help ensure that compliance and quality reporting are hot topics this reporting season.

Further information on ASIC’s recent announcement is available at PolicyPoint - Latest News.

**(Corporate Governance Principles and Recommendations Second Edition August 2007, p23. Available at asx.com.au.)