Corporate Governance Statement
Corporate governance is the system by which companies are directed and controlled. The framework of rules and practices by which a company ensures accountability, fairness, and transparency in its relationship with its stakeholders.
Each Director has a statutory requirement under Chapter 2D of the Corporations Act 2001 and other regulatory provisions.
The Australian Prudential Regulation Authority (APRA) has issued Consolidated Prudential Standard CPS 510 Governance, which sets out minimum foundations for good governance of regulated financial institutions, such as Australian Mutual Bank. This standard “aims to ensure that regulated institutions are managed in a sound and prudent manner by a competent Board of Directors, which is capable of making reasonable and impartial business judgements in the best interests of the regulated institution and which gives due consideration to the impact of its decisions on depositors”.
The Board of Directors has overall responsibility on behalf of the shareholders (Members) for the business of Australian Mutual Bank Ltd.
In governing the Mutual Bank, the Directors must act in the best interests of the Mutual Bank as a whole. To fulfill this role, the Board develops and approves strategic direction and financial objectives, and oversees Management’s progress against these plans and objectives.
To assist in this process the Board has adopted a Board Governance Charter and Policy.
The Board Charter is a written policy document that defines the respective roles, responsibilities and authorities of the Board, both individually and collectively, and of Management in setting the direction, management and control of the organisation. As such, it establishes the guidelines within which the Directors and Officers are to operate as they carry out their respective roles.