The memo should include the following:
a) Identify the corporate governance issues at HMI's mines. * The issue: On one hand, the diverting power into provincial electrical grid has resulted in an overlook for its own operations. On the other hand, a significant portion of these earnings is going into executive bonus pool for distribution to senior management. * This has demonstrated the company’s management has been corrupt in some respects, especially the earning should be used to solve the company’s own operation problem. * The company is lack of social responsibility …show more content…
* Safeguard integrity in financial reporting.
Companies should have a structure to independently verify and safeguard the integrity of their financial reporting. * Make timely and balance disclosure
Companies should promote timely and balanced disclosure of all material matters concerning the company * Companies should establish a sound system of risk oversight and management and internal control.
c) Suggest ways to monitor compliance with corporate governance requirements. * Establish sound, transparent and compulsory reporting system.
Stringent transparency in all important matters (in particular regarding conflict of interests, third party transactions); Timely disclosure of the annual report (also in English);Reporting of non-financial risk related information * Set up audit committee. To ensure sufficient audit quality: True independence of auditors including an open and transparent tender process as well as prohibition of most non-auditing services. * Allow public bodies to monitor and interfere in company’s compliance issue. Public bodies like ASX, Government.
d) Recommend the philosophy and approach of Heavy Metal Inc. to the