Corporate governance in Australia

Corporate governance in Australia acts as an important control mechanism that links the direction of an organisation with its economic, social and environmental (i.e. TripleBottom Line) performance. The challenge of corporate governance in Australian corporations is similar to those faced by the majority of corporations operating internationally today (see Clark, 2006; Jensen, 2005) - but the manner in corporate governance is structured in Australia represent a strong reflection of the island continent's people, egalitarian culture, and legislative framework. This chapter will provide a summary of what the corporate governance concept means in the Australian context, before describing the legal and regulatory framework that underpins the concept in that country. Next, the chapter will provide an overview of the external market for corporate control, and the implications this has for the typical ownership structures and remuneration practices (for Boards of Directors). Lastly, this chapter will focus on specific shareholder rights and shareholder activism in Australia, and how these together influence the way Australian corporations link corporate governance practices to organisational performance and standards of corporate social responsibility.