In August, the Australian Securities and Investment Commission
(ASIC) published its report 'Emerging market
issuers'. The report highlighted the difficulties faced by
corporations with operations overseas, in terms of control and
corporate governance and the risk this potentially posed to
investors.
With over 36% of listed companies having an exposure to emerging
markets, it is essential that timely and accurate reporting and
compliance with the ASX Listing Rules be followed.
This presents some key challenges for companies operating in
South America. With complex cultural and language barriers,
companies face difficulties ensuring good corporate governance and
disclosure aggravated by a lack of access to reliable information,
challenging contractual arrangements and reliance on a few key
industry players. Unfortunately, good reporting is often the
casualty – putting both the company and its investors in
jeopardy.
