ABSTRACT

This Code of governance, which deals with the Principles, should be studied with the Report in which recommendations of the best practices for each principle are provided.

All entities should apply the principles in the Code and consider the best practice recommendations in the Report. All entities should

by way of explanation make a positive statement about how the principles have been applied or have not been applied. This level of disclosure will allow stakeholders to comment on and challenge the board on the quality of its governance. The application will differ for each entity and is likely to change as the aspirational nature of the Code should drive entities to continuously improve governance practices. It is important to understand that the ‘apply or explain’ approach requires more consideration and explanation of what has actually been done to implement the principles and best practice recommendations of governance.