Reference no: EM133022580

You are a newly admitted CPA member and have started working for Sky High Ltd (SH) a listed ASX300 company in Australia. You are aware that the updated ASX Principles and Recommendations ( ASXPR) became effective from 1 January 2020 and want to be sure they are being followed. You witness the following in relation to Sky High's board of directors:

• New directors are appointed by the existing directors as the existing directors would have detailed knowledge of the skills and capabilities of the new incoming director. The new directors are verbally offered a directorship in the company and verbally advised of their responsibilities.
• You are unable to determine which of the current directors on the Board are independent. You have been told by the CEO that 4 directors are independent.
• There are 10 directors and 2 of the directors are female.
• The Board reviews the performance of its senior executives every 2 years.
• The audit committee is made up of one executive director, one non executive/independent director and one non executive/non independent director.

a) Explain whether the ASXPR have legislated authority and whether Sky High Ltd can choose not to follow them.

b) List and explain four (4) possible contraventions of the ASXPR. ( in your answer you must note the specific reference to ASX Principles eg principle 1 Recommendation 1.1 to be awarded marks)