Mid-Cap Corporate Governance report

The 2007 BDO Kendalls Mid-Cap Corporate Governance report highlights a deterioration in governance levels across the mid-caps sector (ie 150 “mid–sized” Australian listed companies, the 251st–400th largest based on market capitalisation at 31 December 2006).

Key highlights of the report include:

• Less than 50% of mid-cap companies (69) have an independent chairman, and only 25% have a majority of independent directors.
• A high 90% of surveyed companies had an audit committee, with more than 80% having an independent chair.
• Almost 71% of mid-caps had a separate remuneration committee, however less than 40% had a separately constituted nomination committee and more than half (56.9%) did not have a majority of independent members.
• 14.7% of companies did not have a code of conduct; 14% did not have a risk management policy, and 38.7% did not have a share trading policy.