Ensuring balance in corporate governance : parts 2F.1 and 2F.1A of the Corporations Law

Effective corporate governance must balance the competing, and at times conflicting, objectives of efficient endeavour and accountability. The CLERP amendments to the Corporations Law introduced on 13 March 2000 go a long way towards providing this balance. While the business judgement rule was introduced to promote efficient endeavour, Pts 2F.1 and 2F.1A maintain corporate accountability. This article compares Pts 2F.t and 2F.1A of the Corporations Law. It is argued that, although there are procedural and substantive differences between the two parts that need to be understood by practitioners, the importance of the two Parts is that they work together to provide for a much-needed improvement and enhancement of shareholder rights and remedies, thus upholding accountability in corporate governance.

Encouraging a culture of justification: a comparison of Teoh and Baker

Focuses on the intersection of administrative law, international law, and universal human rights concepts in Australia and Canada. Comparison of  court decision between the cases involving Ah Hin Teoh and the Canadian  Minister of Citizenship and Immigration; Effect of the ratified United Nations  Convention on the Rights of the Child on administrative decisions; Judicial supervision of executive actions.

Australian tort law reform: statutory principles of causation and the common law

By mid-2004, Parliaments in each Australian jurisdiction will either complete or will be in the process of partial codification of the law of torts. The reforms, including those to the law of negligence, are extensive. This article focuses on codification of the law of causation as an element of the cause of action in negligence. It examines the background to "tort reform", as the process has been labelled, and discusses the common law paradigm of negligence and various approaches to causation. It then analyses and compares the causation provisions in each jurisdiction.

Holding the purse strings : the continuing evolution of human rights law and the potential liability of the finance industry for human rights abuses

While the responsibility of States and, in more recent times, corporations, has been thoroughly discussed in relation to human right~, a new stage of evolution may be emerging in relation to the liability of the financial backers of an enterprise that is accused of human rights abuses. This article considers the basis in international law for such emerging liability and examines some of the legal avenues used in recent domestic litigation against financial institutions. The article concludes by examining some of the relevant instruments of 'soft' international law and notes that although there is little in the way of concrete legislation or judicial precedent that would hold financial institutions responsible for the actions of those they invest in, the potential for the law to evolve in that direction is clear.

Removal of directors of public companies takes centre stage in Australia : an exploration of the corporate law and governance issues

Increasing attention is being given to the legal and governance issues relating to the removal of directors in Australian public companies. This has been due mainly to the difficulties experienced by the board of National Australia Bank in attempting to remove one of its fellow directors, and the subsequent development of public companies entering into so-called 'prenuptial agreements' with new directors, requiring that the director 'resign' if the board pass a vote of no-confidence in the director. In this article, the author revisits the area of director removal in Australian public companies for two reasons. The first reason, which covers the majority of the article, is to engage in a detailed analysis of whether the pre-nuptial agreements which some public companies have indicated that they support using to remove directors, are in fact enforceable under Australia's Corporations Act The second reason is to outline a law reform proposal to enable public companies to remove directors without requiring the vote of shareholders at a general meeting. The proposal involves providing Australia' corporate  regulator, the Australian Securities and Investments Commission (ASIC) with the power to grant relief from the statutory removal provisions to public companies, but in a way which balances the competing objectives of commercial efficiency and shareholder participation and, very importantly, encourages good corporate governance practices by companies in relation to the performance assessment  of directors.

It is in the interests of both shareholders and directors to agree on a set of ground rules for the effective supervision of companies that reconciles the rights of the owners to overall control with the much tougher demands on modern directors

Does the use of computer assisted learning packages improve performance in accounting?

This study examines the factors affecting student performance in an undergraduate financial accounting course, utilising Computer Assisted Learning (CAL). Multiple regression analysis on student performance shows that positive perceptions of the usefulness of CAL significantly influenced performance. It was also found that International students had significantly poorer performance than local students. This result may be attributed to transitional problems experienced by these students, given their different pathways to university study Prior studies of accounting and computing at secondary school level, together with gender, were not significant influences on performance. The results have implications for accounting educators utilising CAL in courses as a means of improving students understanding of accounting concepts and as a means of providing efficient and effective educational instruction to maximise learning outcomes in accounting.

An analysis of CSI/FBI and AusCERT surveys

The paper responds to the release of both the AusCERT and CSI/FBI computer crime and security surveys with a comparison of the results between the two countries' respondents. Overall both surveys show the trend that most organisations employ security technologies but half of them still experience incidents which compromise their security. These incidents have significant quantifiable losses but despite these organisations are still loathed to report to law enforcement agencies for various reasons. These include the impression that law enforcement agencies are not interested, and the negative publicity such incidents can cause in their aftermath.

A theoretical framework of analysis of accounting propensity in different religions

“Can accounting practices be analyzed in a religious system of beliefs framework?”- this paper discusses and develops a theoretical framework for answering the question based on Hofstede and Gray’s model and an analysis of accounting practices in an Islamic agenda. The paper has three purposes. First, it analyses Hofstede and Gray’s model of accounting practices derived from a cultural framework including authority, measurement, enforcement and disclosure. Then, it is argued that Hofstede’s cultural values drive to depict the Islamic societal values by referencing Holy books verses of Muslim; Koran. Third, the study utilizes the Islamic societal values by applying Gray’s model to develop a theory for determining Islamic accounting practices. The model developed here provides a reasonably sound explanation of how religion as one cultural factor affects accounting practices in different societies. In examining Islam as one of the influential religions in the world, the paper reasons that Islamic accounting configuration attends to statutory control in accounting authority, moderate in disclosure of financial information, uniformity in using accounting methods and principles, and optimism in regard to accounting measurements.

Professionalisation and accounting in China: a historical and comparative review

While applied broadly within the setting of accounting and some other occupations, “a profession” is a particularly Western concept with peculiarly British origins. Additionally, the significance of such status and the process of “professionalisation” by which it is acquired remain beset by lingering uncertainties. Examination of the sociology of the accounting occupation within non-Western locations can contribute to exposing and clarifying these problematic and contingent aspects of occupational stratification, as well as assist in redressing the bias towards English-speaking and European countries within the accounting history literature. Proceeding from these theoretical premises, a historical and comparative study of the accounting occupation within China is undertaken. This seeks to integrate the world’s most populous nation into the historical narrative of the professionalisation of accounting, and reinforces – often vividly – that accountants’ work status is not bound to any predetermined trajectory which is innate to the occupation. Instead, the variety of localised and time-specific variables which constitute the occupational context are shown to exert a dominating influence.

Professional accounting qualifications of audit committee membership : implications for curriculum and learning

A useful attribute of the audit committee is to have accounting financial experts on that committee of the Board. Defond, Haan and Hu (2005) argue there is a positive market reaction to the appointment of such experts. This study analyses how many qualified accountants there are on the Boards of Australia’s largest companies. The study finds that, while many Boards have at least one qualified financial accountant on their audit committee, the great majority of members are not qualified accountants. The paper considers whether this paucity of professionally qualified accountants on audit committees has any implications for the curriculum development and learning objectives of corporate governance and related topic areas within the disciplines of accounting and auditing in undergraduate and graduate professional accounting programs within the international tertiary education sector?

The yoking of unconscionability and unjust enrichment in Australia

Given problems with, and judicial criticism of, unjust enrichment as a principle, it is necessary and appropriate that unjust enrichment be subsumed by the expanding doctrine of unconscionability - could create a unifying concept which can be applied to achieve justice in a variety of different contexts - triggers for equitable intervention to reverse or adjust transfers of resources on the basis of unconscionability - where there is neither real consent or real consideration - where either variable is absent and it is unclear whether the other is satisfied - approach would inject principle into unconscionability and explain and justify the need for reversing or adjusting the transfer of property or other resources in some circumstances.