The CI Report appears to be lacking in its levels of disclosure and nonexecutive directors are also being paid remuneration on par with executive directors which is likely to pose a conflict of interest and impede internal controls within the organization.According to the Australian Guidelines, corporate governance is the system by which companies are directed and managed, and this influences the process whereby organizational objectives are set and achieved, risk monitored and assessed, and performance-optimized (ASX 2003, pg 3). Failures of corporate governance in companies such as Enron and Adelphia have produced a negative impact on investor confidence and made them question the integrity of the information that is provided in the financial statements of a corporate entity (Rezaee, 2004).The development of corporate governance codes has as its primary objective, the restoration, and increase of investor confidence through increased accountability and transparency in corporations (Mallin, 2007:21). Effective corporate governance enhances investor confidence, enhances competitiveness, and ultimately contributes to economic growth. Corporate governance has become increasingly important in determining the cost of capital and can help in making Australian companies competitive in a global market.The recommendations provided by the ASX Corporate Governance council emphasize some basic areas that corporations must focus upon. The first is the clear establishment of the roles of the management and the Board as set out under Principles 1 and 2 of the Guidance, through (a) increased disclosure, especially of potential risks and director remuneration (b) maintaining an appropriate balance between achieving a desirable level of Board independence and maintaining sufficient experience and competence on the Board and providing an explanation if an optimal number of nonexecutive directors are not included on the Board.