the finance company debacle and Feltex failure were more than normal commercial failures, there were clear signs that governance and regulatory issues played major roles in the huge losses suffered by investors.
all the parties in the corporate reporting process are well remunerated but none of them accept responsibility, the buck is passed around and around and around.
This lack of responsibility has been a major problem with the finance company sector as well as Feltex.
It will continue to be a drag on the performance of our public issuers until clear lines of responsibility are established under statute and through regulatory guidelines.
The article is well worth reading.
There has been in recent years an immense loss of shareholder/investor value. Small wonder that there is a reluctance to invest, this then leads to companies being sold overseas or remaining small. Thus our growth problems are worsened.
Strong governance with appropriate regulatory support is needed.