The first decade of the twenty-first century started with corporate failures of a cast scale and ended with a global financial crises. Since 2003, the ASX Corporate Governance Council has developed and released Principles and recommendations on the corporate governance practices to be adopted by ASX listed entities to achieve good governance outcomes and meet the reasonable expectations of most investors in most situations. This study examines how might a better application of the third edition of ASX Corporate Governance Principles have possibly prevented the failure of Vocation Ltd.
The phrase “corporate governance” describes “the framework of rules, relationships, systems and processes within and by which authority …show more content…
Early in 2014, when Mr. Whitford, who was sitting on the executive committee, raised some concerns about the transactions occurred in OzSoft, a small education IT company majority-owned by the BAWM, and also had disagreements about company administration with Mr. Dawkins the chairman, he was frozen out by the board of Vocation and then fired in June 2014.
On 21 August 2014, Vocation delivered a strong full year result and announced that All three revenue channels performed well ahead of expectations.
On 25 August, another announcement was responded to press the speculation. In the announcement it claimed that in spite of the undertaking review of the DEECD, there was no evidence showing any impacts on the funding contracts. They put a fateful end in the announcement that they “consider that neither the review nor its anticipated outcomes are material to Vocation”
On 19 September, Mr. Hutchinson admitted that 100 per cent of BAWM’s funding had been suspended, not just the funding for the three courses being …show more content…
However, it turned out that the company kept arranging students in inappropriate courses which are not fulfill their needs and providing low-quality training. These conducts have resulted in thousands of students being trapped in low-quality courses, and giving out questionable qualifications. Besides, one of the senior manager being frozen out of the board and fired for raising doubts in some suspicious transactions was also a consequence of CEO acting without taking the interest of shareholders into concern and being