Developing a Responsive Regulatory System for Australia's Small Corporations: Governance for Small Business

This purpose of this project is to develop a responsive regulatory model for small corporations drawing together the experiences of small corporation owners/mangers, CEOs of industry associations, regulators, the Federal Treasury, industry leaders and academic experts. The scope of this study was restricted to compliance with the governance requirements of the Corporations Law and to corporations defined as ‘small’ under the Corporations Act and that are not public or listed companies. The analytical framework of the study (Refer to Chapter 5) suggests that Government regulation promulgated in the Corporations Law impacts on the small business sector. The response to the regulation, evident in internal governance mechanisms, is mediated by the context in which a business operates. The aim of the regulation is to facilitate small business performance which, in turn, has implications for the performance of the economy. The aims of this study, stage two of the project, were to determine what are the factors which inhibit or promote good governance in small corporations and what kinds of regulation, or some other approach, will best achieve the desired outcomes. The research questions were: What were the key governance issues that were a problem for the operation and growth of small business? What is the aim of corporate governance regulation of small corporations? What could the regulators do to improve regulation of small corporations? What are the real issues that inhibit efficiency and effectiveness in small businesses?