Corporate Governance and the 2012 Failure of the Hastie Group (Asx)
Title: Corporate Governance and the 2012 Failure of the Hastie Group (ASX)
Assignment Topic:
An outline of, and brief discussion of the importance of, the bases or criteria for the review of the organisation’s governance (eg, refer to which standards or guiding principles are relevant for the review) and why you need to use them.
A brief critical review of the relevance of concepts, principles, standards or other tools and techniques learnt during this subject, in conducting your review
A list of recommendations for improvement based on your review
Word Count: (Introduction to Conclusion) 2,445
Executive Summary:
Hastie Group was an ASX listed Engineering Group that entered into voluntary administration on May 28th 2012. Creditors have voted to liquidate what remains of the group as of February 2013. The Hastie Group presented a strong financial position during 2011 and again during 2012 as part of a recapitalisation program. Although Hastie appeared to have good corporate governance practices at first glance the failure of the business points to a shortfall in corporate governance activities at the Hastie Group. This report will examine what some of those failures were; the principles that underpin them and why they were significant. Finally the report will make some recommendations on how the Hastie Group may have improved it Corporate Governance performance.
Table of contents Page No A) 3
B) 5
C) 7
References 9
A) The corporate governance performance of the Hastie Group board has been widely criticized since its dramatic collapse in May 2012. Amongst the most strident critics has been PPB Advisory – who has taken on the role of Administrator. PPB Advisory, in their 2nd report to creditors (Carson, Crosbie & McEvoy 2013, p14) have suggested that a litany of failures ranging from poor strategy, inadequate internal controls and inaccurate and inadequate financial reporting may well
Assignment Topic:
An outline of, and brief discussion of the importance of, the bases or criteria for the review of the organisation’s governance (eg, refer to which standards or guiding principles are relevant for the review) and why you need to use them.
A brief critical review of the relevance of concepts, principles, standards or other tools and techniques learnt during this subject, in conducting your review
A list of recommendations for improvement based on your review
Word Count: (Introduction to Conclusion) 2,445
Executive Summary:
Hastie Group was an ASX listed Engineering Group that entered into voluntary administration on May 28th 2012. Creditors have voted to liquidate what remains of the group as of February 2013. The Hastie Group presented a strong financial position during 2011 and again during 2012 as part of a recapitalisation program. Although Hastie appeared to have good corporate governance practices at first glance the failure of the business points to a shortfall in corporate governance activities at the Hastie Group. This report will examine what some of those failures were; the principles that underpin them and why they were significant. Finally the report will make some recommendations on how the Hastie Group may have improved it Corporate Governance performance.
Table of contents Page No A) 3
B) 5
C) 7
References 9
A) The corporate governance performance of the Hastie Group board has been widely criticized since its dramatic collapse in May 2012. Amongst the most strident critics has been PPB Advisory – who has taken on the role of Administrator. PPB Advisory, in their 2nd report to creditors (Carson, Crosbie & McEvoy 2013, p14) have suggested that a litany of failures ranging from poor strategy, inadequate internal controls and inaccurate and inadequate financial reporting may well
References: ABC News 30May2012 – Deloitte Failures, Last Viewed 16 March 2013 http://www.abc.net.au/news/2012-05-30/deloitte-faces-questions-over-hastie-collapse/4040850 Carlson I, Crosbie C, McEvoy D, 2013, ‘Hastie Group Limited and Specific Subsidaries Report by Administrators , Last Viewed March 16 2013 http://www.ppbadvisory.com/uploads/i281-439A-report-FINAL-updated-29-Jan-13-.pdf Hastie Group Annual Share Holder Review 2010, Last Viewed 16 March 2013 http://admin.hastiegroup.com.au/library/Shareholder%20Review%202010_0.pdf Hastie Group Annual report 2010, Last Viewed 16 March 2013 http://admin.hastiegroup.com.au/library/Hastie%20Group%20Annual%20Report%202010.pdf Hastie Group Annual Report 2011, Last Viewed 16 March 2013 http://admin.hastiegroup.com.au/library/HastieGroup_AR2011.pdf Thompson AA, Peteraf MA, Gamble JE, & Strickland, AJ 2012, Crafting and Executing Strategy, 18th Edition, New York, McGraw-Hill.