CA ANZ is broadly supportive of the draft 5th edition of the ASX Corporate Governance Principles and Recommendations and its overall direction.

In its submission, CA ANZ welcomes the decision to refine the existing framework rather than redesign it, including retaining the eight principles and the ‘if not, why not’ approach. The clearer distinction between principles, recommendations and explanatory material, and the removal of requirements that substantially duplicate existing law, are also welcomed.

The submission highlights several areas where further clarity would assist entities and investors. These include how length of service should be considered when assessing director independence, and the scope of periodic corporate reporting and the board’s process for considering its integrity.

CA ANZ also considers the revised approach to board skills and experience provides greater flexibility for entities. It recommends that disclosure focus on the outcome of the board’s assessment and the approach adopted, rather than requiring disclosure of the process.

The submission welcomes the greater emphasis on culture, values, conduct and stakeholder engagement, including recognition of the board’s role in overseeing culture.

Reducing unnecessary reporting and compliance burden is another focus of the submission. CA ANZ supports the streamlined Appendix 4G and recommends that the Listing Rules more clearly reflect the principles as the primary focus of governance reporting, with recommendations providing practices that support those principles.

CA ANZ also highlights the importance of adequate implementation time and clear supporting guidance, particularly as entities implement the new requirements.