Governance

Whether companies have adopted ASX corporate governance principles:

The ASX has laid down 8 principles of corporate governance that every listed company has to follow. These principles are:

1. Lay Solid Foundation for Management and Oversight

2. Structure the board to add value

3. Act ethically and responsibly

4. Safeguard integrity in corporate reporting

5. Make timely and balanced disclosures

6. Respect the rights of security holders

7. Recognize and manage risk

8. Remunerate fairly and responsibly

WestField Retail Trust (WRT):

WRT was listed in 2010. The first principle relates to laying solid foundation for management and oversight of the organization. In its 2013 annual report, WRT has declared that it has adopted this principle by placing certain matters such as the strategy and direction of the company, financial controls, capital structure, appointments, etc. under the authority of the Board, which may delegate these functions to the senior management. The board is also the decision making authority in matters of corporate governance such as independence of non-executive directors.

Another requirement under this guideline is to have formal agreements of appointment with the directors and senior management. WRT has adhered to this requirement and its annual report explicitly mentions that every director on the board has received a letter of appointment detailing the terms of appointment (WRT 2011). Additionally, the trust also meets other guidelines such as a diversity policy, standards against which the performance will be measures, etc.

The second principle is about structuring the board to add value. All the guidelines under this principle has been met except for the requirement to establish a nomination committee by the board. The explanation given is that this function is performed by the board.

The next principle is to act ethically and responsibly and WRT has met this guideline by establish a code of conduct...