5. Legislation – Qantas Sale Act
Between 1992 and 1995 the Australian government completed the privatisation of Qantas, the Australian Parliament also passed legislation referred as the Qantas Sale Act 1992 (QSA). The Department of Parliamentary Services (2014) reports that under this legislation foreign ownership was capped and the airlines brand ‘QANTAS’ and operations must remain substantially in Australia.
In 2014 the Australian Parliament passed amendments to repeal those rules in the Qantas Sale Act (1992), in addition though QANTAS must still comply with legislation under the Air Navigation Act 1920. This legislation means that Qantas must be able to demonstrate that ownership of its International operations are substantially
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The board has structured itself to meet the requirements of the ASX (2014)
1. Board Structure
The composition of the board is clearly documented in the Charter that the board must be majority Independent Non-Executive Director (INED) and only the CEO position. The chairman role is also outlined and that the incumbent must be an INED who an Australian citizen is appointed by the board. The Chairman is not to excise the role of CEO of Qantas and must not have held that position previous.
2. Board Independence
In line with ASX (2014) recommendation 1.2 Qantas is very articulate around the Independence of a director and their responsibilities to inform the board of their interests outside of Qantas.
3. Board Size
As explained previously by Lipman (2007) board sizes should vary between no less than four directors or greater than ten. As outlined on Qantas.com.au (2015) Board of Directors are currently made up of nine members and in February 2015 will become ten members of which 9 will be INED and the CEO.
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The Qantas board as outlined in their past financial year results has not been delivering this and the market has particularly focused on this. Under the board committees of Audit and Safety, Health, Environment and Security the company results indicate that the board is not fulfilling their duties to ensure that enterprise-wide risks and compliance to the framework are being delivered on. There is also the question on if the board is under ASX (2014) recommendation 1.1 is providing the right leadership and setting of the company strategy as well as monitoring the execution and providing appropriate approvals of the operating budgets and major capital expenditure in the interest of the shareholder considering the large losses the company has
...onclude, the strategies used by Qantas in dealing with these influences have all been relatively effective. The use of technology has been the most effective in providing the business with a competitive advantage and has very little downsides when compared to other strategies. Operations management has dealt with globalisation effectively and greatly reduced costs and provided the business with a competitive advantage at the expense of the business reputation and individuality. Strategies which involve product differentiation have been used very effectively and are beneficial to Qantas. However the more cost leadership strategies that Qantas uses, the more likely that the business will lose it’s own individuality as the “Red Kangaroo”. In general, Qantas has been able to keep it’s business running relatively successfully and has dealt with it’s influences very well.
The board of directors is a good mix of people. The team has a vast knowledge about being running companies. They know about raising capital. They know about building a company from scratch. The gap of knowledge would be customer service. Of course, some of them might have a conflict of interest because they have their own company they are running. Ultimately, what team would want is a return on their investment, whether that be money or
The corporation’s business is carried out by its management, under the direction of the Board of Directors. The Board, and each committee of the Board, has complete access to management. Also, the Board and committee member’s has access to independent advisors as each considers necessary or appropriate. Mallor, Barnes, Bowers, & Langvardt (2010) state that the Board of Directors also, issues shares, Adopts articles of merger or sha...
The oversight responsibilities of the board, the CAE lacking of expertise or broad understanding of financial controls and responsibilities, and the understaffed internal audit functions lacking of independence and direct access to the board of directors contributed to the absence of internal controls. To begin with, the board should be retrained to achieve financial literacy to review financial reporting. Other than attending formal meetings, the board of directors should be more involved with the management. For the Audit Committee, the two members who were recruited as acquaintances to Brennahan need be replaced with experts who are more sufficiently knowledgeable about accounting rules beyond merely “financially literate”. Furthermore, the internal audit functions need to expand with different expertise commensurate with the expanded activities of the organization, testing financial reporting rather than internal controls from an operational perspective. The CAE should be more independent and proactive to execute audit plans, instead of following orders from the CFO, and initiate a direct and efficient communication between internal audit and audit
No matter how a business operates, change is inevitable and affects all businesses. CAMERON SMITH investigates the changes Qantas have had to undergo in order to keep up with their competitors, whilst navigating the challenges of low cost of fares.
“The financial crisis and various corporate scandals have caused widespread concern over the way corporations are governed and their responsibilities to stakeholders.” Regulators and academics have emphasised the importance of board diversity in improving the strategic and monitoring role of the board, and preventing further business failures. The discussion has recently concentrated on the poor representation of female members at board level, which seems to be a common problem in most countries, including the United Kingdom. It has been suggested that women can provide boards with “unique qualities and resources that can improve board dynamics, strategic decision-making and firm performance.
The Board of Directors is consisted of 11 members: James M. Elliot, the Chairman of the Board, 3 inside members and 7 outside members. The economy is stable and profitable, but that also means a lot of competition in the market. This poses a great opportunity for the company to grow and gain more of the market share. The only foreseeable real threat that the company will face is new competitors in the market.
Nortel’s board structure is one of the factors that was said to have led to their failures. Stakeholders elect a board of director’s member and their sole job is to look out for the interests of the owners. It has always been advised to have an “Independent board of directors” that have no shares invested in the company as opposed to non-executive board members. Nortel’s board was independent but ran into issues with the number of people on their board, their financial knowledge of the company, and having too many responsibilities for each member.
The purpose of this report is to show how Qantas was affected by global financial crisis. Qantas is the second oldest airlines in the world. It is one of the tough competitors for other airlines. But Qantas was affected badly during the crisis, the tickets prices went up because the fuel prices went up. I have suggested few recommendations for Qantas to bounce back , what can be done without laying of the employees and have also spoke about cost cutting.
• Qantas had to make an increased profit and pay a dividend to its shareholders which increased over the years of management
Thus, to satisfy sociocultural concerns, Qantas can revise and amend parts of their product services to provide to the broader spectrum, meeting the needs of consumers internationally in a growing globalised society. These adjustments are endorsed in their ‘Diversity Statement’ online where Qantas (2014) states that their inflight merchandises can be changed to “meet the needs of its customers” in a number of ways, such as requesting meals for special dietary requirements and foreign entertainment programs. However, Qantas needs to adjust its promotional policies in order to adhere to the aging population and maximise market share as present...
Secondly, companies have a duty to “seek balanced representation of each sex on their boards” . While the legal committee of the ANSA considers this to be a general principle without any legal force, for others, the provision is imperative. Every time a company appoints a new director, it has the obligation to show that it fulfilled its obligation (“Obligation de moyen”) to seek a balanced representation of its board.
The board membership, irrespective of executive or non executive membership, is very crucial in the governance and management of the company. However, as the duties and responsibilities of directors vary according to their type of directorship; the rewards should also match the responsibilities carried out and be in line with the performance shown over period of time.
Board of Directors) is expected to do an extensive research before taking such an important decision, which Andy clearly did not. Hence, Andy does have a liability under section 180(1) of the Corporations Act, since he did not take did not act with due care or diligence, which he was supposed to, being on the board of directors of the company. Further, (In Re Brazilian Rubber Plantations and Estates Ltd (1911) 1 Ch 425 at 437) Justice Neville said of a director of a company that- ‘He is not, I think, bound to take any definite part in the conduct of the company’s business, but so far as he does undertake it he must use reasonable care in its dispatch. Such reasonable care must, I think, be measured by the care an ordinary man might be expected to take in the same circumstances on his own behalf.’ In the case of (Australian Securities and Investments Commission v Healey (2011) FCA 717), it was held that, Each and every director has a cardinal role in the management of the company and is positioned at the top of the structure of the organisation. It is also a set law that the higher the position held by a person in an organisation the greater would be the responsibility on
Corporate governance is the set of guidelines that determines the control and organization of a particular company. The company’s board of directors is in charge of approving and reviewing changes to this set of formally established guidelines. Companies have to keep in mind the interests of multiple stakeholders, parties who have an interest in the company. Some of these stakeholders include customers, shareholders, management, and suppliers. Corporate governance’s focus is concentrated on the rights and obligations of three stakeholder groups in particular: the board of directors, management, and shareholders. Corporate governance determines how power is split between these three stakeholders. A company’s board of directors is the main stakeholder that influences the corporate governance of a company (Corporate Governance).