Nine Principles Of Corporate Governance

1. Question 1 Presentation of Financial Statement
A critical review is conducted on Michael Hill International Ltd.’s (MHI) corporate governance disclosures in the 2014 Annual Report for Year ended 30th June 2014. To evaluate and determine whether the company complies the requirement of each of the Nine Principles of Corporate Governance (Securities Commission New Zealand, 2011) listed below as the sub-titles.
1.1. Directors should observe and foster high ethical standards
First of all, the board adopts the overall principles of Directors’ “Code of Proper Practice for Directors”, and considers that the policies and procedures of its corporate governance are consistent with NZX Corporate Governance Best Practice Code (MHI, 2014). Corporate code of ethics is published in the MHI’s annual report and training is provided to employees on the details in the concerns of all stakeholders of the company including employees, customers, business partners, shareholders, communities, property and assets, and governments. Conflicts of interests are clearly stated within the code of ethics along with the measurement for the acceptance of gifts (Securities Commission New Zealand, 2011). A speaking up

There are total of eight directors which the number of executive and no-executive directors is not well balanced with two executive and six non-executive directors. Additionally, four directors meet formal criteria for “independent directors” (Securities Commission New Zealand, 2011). The board possesses wide range of skills and knowledge from each directors such as jewellery retailing, marketing, property development, investment management, interior layouts design, and accounting (MHI, 2014). Every director holds abundant experience in the particular field of expertise that benefits the board to have 360° view of managing a business, and better perspectives of its development and work more effectively and