COMM333 Lecture Notes - Lecture 6: Corporations Act 2001, Personality Rights, Legal Fiction
Document Summary
Corporate governance is not a term of art. At its broadest sense, the governance of corporate entities comprehends the framework of rules, relationships, systems and processes by which authority is exercised and controlled in corporations. (hihrc in clarke & dean, 2007) Legal fiction-constructed by the corporations act 2001 (cth). Corporation has a personality rights and responsibilities of a legal person. A corporation has rights and responsibility, therefore it is accountable. To govern implies authority to manage & control. Therefore, those who govern corporations have rights and responsibilities and can be held accountable. We will come back to the idea of the corporate group later in the topic, but for now we will look briefly at the various parties to whom corporate governance relates. At the top of the organisational structure are the shareholders, who own the company. Following this is the board of directors, who are responsible for the supervision of the overall affairs of the company.
