A critical review is conducted on Michael Hill International Ltd.’s (MHI) corporate governance disclosures in the 2014 Annual Report for Year ended 30th June 2014. To evaluate and determine whether the company complies the requirement of each of the Nine Principles of Corporate Governance (Securities Commission New Zealand, 2011) listed below as the sub-titles.
1.1. Directors should observe and foster high ethical standards
First of all, the board adopts the overall principles of Directors’ “Code of Proper Practice for Directors”, and considers that the policies and procedures of its corporate governance are consistent with NZX Corporate Governance Best Practice Code (MHI, 2014). Corporate code of ethics is published in the MHI’s annual report and training is provided to employees on the details in the concerns of all stakeholders of the company including employees, customers, business partners, shareholders, communities, property and assets, and governments. Conflicts of interests are clearly stated within the code of ethics along with the measurement for the acceptance of gifts (Securities Commission New Zealand, 2011). A speaking up system is implemented to monitor any unethical behaviour among employees and the consequence of violation is mentioned (MHI, 2014). It is believed that the code of ethic is a guide to help MHI directors and employees maintain high ethical standards.
1.2. There should be a balance of independence, skills, knowledge, experience and perspectives among directors so that the board works effectively
All directors’ information are included in the Annual report. There are total of eight directors which the number of executive and no-executive directors is no...
... middle of paper ...
... direction of the Group by setting the objectives, strategy and key policy areas. It is also responsible for supervising the process and ensure implementation is consistent with the agreed framework (MHI, 2014). Code of conduct and code of ethics are governed by the company’s constitution to ensure that these policies are broadly accepted environmental, social, and ethical norms, subject to the interests of shareholders (Securities Commission New Zealand, 2011). The Annual Report publishes the company performance highlights for this particular financial year which informs the public regarding the company’s activities and performance, such as revenue increased, number of new stores and to name a few.
In conclusion, MHI’s 2014 Annual Report represents that the company and its directors comply with the overall requirement of the Nice Principles of Corporate Governance.
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