WDS Scores a Five Star Rating...
10 July 2009
WDS scores a five star rating and achieves equal 2nd place in the annual WHK Horwath Corporate Governance Report.
The annual Horwath Corporate Governance Report was first produced in 2002 with the aim of providing an objective and independent assessment of the corporate governance structures of Australia's largest companies.
The 2009 WHK Horwath Mid-Cap Corporate Governance Report was prepared by Jim Psaros & Michael Seamer of the Faculty of Business and Law at the University of Newcastle.
The following is a summary of the 2009 WHK Horwath Mid-Cap Corporate Governance Report (Companies 251-400) as it relates to WDS.
Recent research in Australia has found that companies demonstrating greater compliance with the ASX Corporate Governance Principles outperform less compliant companies in each of the following areas: shareholder performance, operating performance and 12 month sales growth.
There were seven companies that achieved a "five star rating". The top ranked company was Aevum (1st). Congratulations to Aevum for its commitment to corporate governance excellence. The other five-star companies were Austbrokers Holding (equal 2nd), WDS (equal 2nd), SMS Management (4th), Nomad Building Solutions (5th), Biota Holdings (equal 6th) and Sirtex Medical (equal 6th).
Corporate governance structures were outstanding. The structures met all best practice standards and could not be faulted. Companies demonstrated unequivocal independence in all key areas including their Board of Directors, audit committees, remuneration committees, and nomination committees. The board and related committees met regularly and disclosure on related party transactions was clear and unambiguous. The level of non-audit fees paid to the external auditor was within acceptable parameters, and/or a rigorous policy was in place with respect to the provision of non-audit services by external auditor. In addition, there was a documented Code of conduct, policies on risk management and share trading.
In spite of criticism previously made in this Report concerning the "newer" companies, it was pleasing to see that at least one new company (WDS) demonstrated outstanding corporate governance.
This is a further demonstration of WDS's commitment to its values.
The Horwath Corporate Governance Report can be found at www.horwath.com.au
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