The Securities Commission's latest review of corporate governance reporting shows that while most issuers are doing well, many need to improve their disclosures when it comes to ethical standards, directors and executive's remuneration, risk management, and shareholder and stakeholder relations.
"It is important that investors are given high-level assurances that companies have robust corporate governance policies in place. This gives them confidence not only in the company but in the wider New Zealand market as well," Securities Commission Chairman Jane Diplock said.
The Commission's review of 68 issuers found many disclosed relevant information on:
However, issuers could improve their reporting by disclosing:
"Good corporate governance is critically important to the integrity and stability of any company. Correct and thorough disclosure of corporate governance policies and procedures should be the first thing a company does to demonstrate the strength of its corporate governance, but it is, of course, no guarantee of good governance in practice," Ms Diplock said.
The review assessed the annual reports and website disclosures of selected issuers against the Commission's nine principles of good corporate governance. The principles are set out in a corporate governance handbook for directors, executives and advisers published by the Commission in 2004.
Review findings are published on the Commission's website - www.seccom.govt.nz