Corporate Governance Internal and External Mechanisms

Question: Discuss about the case study Corporate Governance for Internal and External Mechanisms. Answer: Purpose Corporate Governance is defined as the system to monitor and balance both the internal and external mechanisms of a company and ensures the proper discharge of responsibility and accountability of all the stakeholders. The objective of corporate governance is to safeguard the interest of these shareholders through strategic direction and appointment of a capable management in order to achieve the desired outcomes. (Denis 2016). Recommendations In order to ensure proper facilitation of corporate governance, Mr. Bob East and Andrea Staines should act in a socially responsible way to diversify the stakeholders. They are expected to diversify the business of Australian Tourism Company and set benchmarks for other such corporations. The directors are expected to prevent the company from any form of insider trading. The directors must carry out their duties in an independent manner and take necessary actions to inform the company about the various operations through proper communication. The directors are also responsible to prepare the financial statement which should be in accordance with AASB standards. The new appointees of the board should also ensure to support legitimacy of Australian Tourism to preserve the relation with the customers and the financial investors (Tricker 2015). Conclusion The directors can also decide to employ specialist to get support in exercising special functions. Mr. Bob East and Andrea Staines should make sure to link the executive compensation with the respective performance of the employees of the Australian tourism corporation. They should posses the adequate knowledge of the various types of the corporation acts stated under Australian tourism company, statutory duties and the knowledge of the operation of the operations committees. Reference List Denis, D.K., 2016. Corporate Governance and the Goal of the Firm: In Defense of Shareholder Wealth Maximization. Forthcoming in the Financial Review. Tricker, B., 2015. Corporate governance: Principles, policies, and practices. Oxford University Press, USA.