Corporate governance - Managing conflicts

Related party transactions

Public companies must obtain member approval to provide financial benefits to related parties (such as a director, their spouse and certain other relatives), subject to certain exceptions.

Directors of public companies with material personal interests in certain matters are also excluded from attending director meetings about, or voting on these matters.

These protections assist in managing the risk that the director's own interests or those of a related party may influence the decision-making of directors to the detriment of the interests of members of the entity as a whole.

Disclosure of directors' interests 

Directors are subject to heightened transparency requirements regarding their dealings in the company's securities. Directors of listed companies must disclose any interests they have in the shares of the company or its related body corporate.

A director with a material personal interest in any matter that relates to the affairs of the company must generally notify the other directors of that interest.

What's new

ASIC’s enhanced supervisory approach

November 2018

John Price talks about ASIC’s enhanced supervisory approach, including a taskforce to focus on corporate governance.

Disclosing climate risk

November 2018

John Price discusses key findings by ASIC on climate risk disclosures and what listed entities can do better.

Reporting against corporate governance standards

October 2018

John Price writes about how listed entities could improve their corporate governance disclosures.

ASIC’s submission to the ASX Corporate Governance Council on the proposed 4th edition of the Corporate Governance Principles and Recommendations

August 2018

More articles on corporate governance

Last updated: 26/05/2016 10:07