Do You Believe Blaines Current Capital Structure Finance Essay

Do You Believe Blaines Current Capital Structure Finance Essay Do you trust Blaines current capital structure and payout strategies are proper? Why or why not? Blaines capital structure and profit strategy are not so much fitting from the perspective of an investor of the firm. The explanations behind that can be summarized as follows: No influence: The ideal blend of obligation and value in the capital structure will amplify investors return. Organization should assume obligation to procure new firms and grow its activities. Low ROE : Attributed to Low use 2006 ROE information unmistakably shows up that ROE of all the tantamount firms are a lot higher than that of Blaine. Expanding Dividend payout proportion As determined in Question no.3, the expense of value of the firm is near 9% while ROE is 11%. This is a decent recommendation for investors. This can be improved by gaining different organizations utilizing money balance that the organization has. Diminishing EPS In any event, when EPS is continually diminishing in the course of the most recent three years, the strategy of giving pretty much same sum in profit may cost organization in future. Method of financing of new acquisitions Blaine Inc. ought to preferably bring capital up in the red rather over giving new stocks to raise capital. This will guarantee EPS steady and will be useful for investors. Ought to Dubinski prescribe an enormous offer repurchase to Blaines board? What are the essential points of interest and detriments of such a move? No, Dubinski ought not prescribe a huge offer repurchase to the board. The explanation behind that is despite the fact that the firm is open recorded, still a huge level of offer is possessed by family itself. Accordingly, repurchasing the offers is comparable to unlisting the organization. Furthermore, there are development roads wherein the organization may require money. The organization should, similar to most recent two years, go for procurement. This will carry an incentive to investors. Else, during the hours of new acquisitions, organization would need to raise capital from the market and because of buoyancy cost; the expense of value will be a lot higher. Consider the accompanying offer repurchase proposition: Blaine will utilize $209 million of money from its accounting report and $50 million in new obligation bearing enthusiasm at the pace of 6.75% to repurchase 14.0 million offers at a cost of $18.50 per share. How might such a buyback influence Blaine? Consider the effect on, in addition to other things, BKIs profit per offer and ROE, its advantage inclusion and obligation proportions, the familys proprietorship intrigue, and the companys cost of capital. Impact of Share Buyback Specifics Worth Comments Value Capital_Pre Buyback ($) 488,363,000 2006, Exhibit 2 Value Capital_Post ($) 279,363,000 No. of Shares exceptional before buyback 59,052,000 No. of offers repurchased 14,000,000 Complete extraordinary Shares 45,052,000 EPS_Old($) 0.91 EPS_New ($) 1.19 Percent change in EPS 31.08% P/E proportion 17.86 Market Price (S) 21.30 Percent change in Share cost 19.28% Debt_equity Book Value 17.90% Debt_equity Market Value 5.21% Obligation loan cost 6.75% Enthusiasm to be paid ($) 3375000 Intrigue inclusion proportion 0.05 ROE 0.11 ROE_new 0.19 Change in ROE 74.52% Cost of Equity 9.01% Cost of Debt 6.25% Viable Tax rate 40.00% Expected future assessment rate D/V 4.95% WACC 8.75% WACC_Old 9.01% Change in WACC - 2.89% Value beta Calculation for the Firm Market Cap Value beta (Net)D/E Net Debt Money Securities All out Debt D/E (1) (2) (3) (4)=(1)x(3) (5) (6)=(4)+(5) (7)=(6)/(1) Home and Hearth Design 776,427 1.03 45.18% 350,790 21,495 372,285 47.95% AutoTech Appliances 13,978,375 1.24 31.74% 4,436,736 536,099 4,972,835 35.58% XQL Corp. 5,290,145 0.96 17.97% 950,639 21,425 972,064 18.37% Bunkerhill Inc. 3,962,780 0.92 6.01% 238,163 153,680 391,843 9.89% Easyliving Systems 418,749 0.67 - 15.47% - 64,780 242,102 177,322 42.35% Blaine Kitchenware 959,596 0.56 - 24.06% - 230,879 230,866 - 13 0.00% Normal 25,386,072 0.90 10.23% 25.69% Unlevered Beta 0.78 Beta_Blaine 0.80 Possession Scenario: For most recent 3 years and post share buyback 2004 2005 2006 2007 Remarkable Shares 41,309,000 48,790,000 59,052,000 45,052,000 Responsibility for relatives 62% 52% 43% 57% Suppositions Used Viable Tax rate has been taken equivalent to 40%, same with respect to Blaine. As an individual from Blaines controlling family, OK be supportive of this proposition? OK be supportive of it as a non-family investor? As a relative of Blaine, the updates on buyback must be assessed in both the ways. The Pros are: Merging Control-This will build the shareholding near 57%. Return of Cash Surplus to Shareholders-As of now in April, 2007, there are no any plans of buybacks. Consequently, keeping money unblemished prompts opportunity cost of investors. This will include an incentive for investors. A powerful guard against takeover-as the market is combining, it will be a savvy choice to shield the organization from antagonistic takeovers. The cons are: Impact on expansionary plans-As money will be utilized to repurchase shares and the organization wont have the option to fund-raise from business sectors sooner rather than later, chances of acquisitions will be defaced. Regardless of whether, organization will raise capital from value showcase, buoyancy cost will be high thus cost of value will be relatively high. Utilization of Leverage-the Company has been against the approach of taking obligation. Taking obligation of $50 million for share buyback won't go in accordance with the companys strategy.

The Scarlet Letter :: essays papers

The Scarlet Letter Nathaniel Hawthorne utilizes a few unique subjects in his novel, The Scarlet Letter; one of the topics Hawthorne utilizes is sin. The Bible instructs that wrongdoing is terrible and abhorred by God. The Bible additionally instructs that the more noteworthy the wrongdoing is, the more noteworthy the discipline is merited. The characters manage the wrongdoing of infidelity. Hester Prynne, the adulteress while as yet being in wedlock with Roger Chillingworth; Reverend Arthur Dimmesdale, the miscreant while as yet being a Reverend; and Roger Chillingworth, a man who lives just to look for vengeance are the three characters that manage this transgression the most. Who submits the more prominent sin? Hester Prynne is by all accounts an individual who can be trusted. Her better half, Roger Chillingworth [Prynne], sent her to New England to make a home for Roger’s return. Hester got a home together. She lets her energy for Reverend Arthur Dimmesdale, be that as it may, impede what she truly should have been doing. Hester never lies about her transgression with Dimmesdale, however she never completely comes out with every bit of relevant information. â€Å"[The letter] is excessively profoundly marked. Ye can't take it off. Also, would that I may bear his distress, just as mine!† (51) Hester wouldn't like to put Dimmesdale in a more awful circumstance than he as of now is in, so she never gives his name as her individual delinquent. Rather, she conveys the disgrace for the them two. Reverend Arthur Dimmesdale, a clergyman, lets his enthusiasm for Hester impede his relationship with God. Dimmesdale needs to tell the townspeople that he is Hester’s individual miscreant. Hester doesn't need him to in light of the fact that she doesn't need him to be disregarded by his kin. Not admitting makes his blame destroy him. He attempts to admit his transgression to God, however never does. â€Å"[He is] kept quiet by the very constitution of [his] nature...Guilty [is] as [he] might be, holding, by the by, an enthusiasm for God’s wonder and man’s government assistance, [he] contracts from showing [himself] dark and messy in the perspective on men...[he] goes about among [his] individual animals looking unadulterated as new-fallen day off [his] heart [is] all dotted and spotted with evildoing of which [he] can't free [himself].† (101) Dimmesdale needs to uncover to his kin his transgression, however when he at long last does, he kicks the bucket instantly a while later.

Am I Plagiarizing An Advanced Infographic

Am I Plagiarizing An Advanced Infographic (16) Have you done a research paper or project before? Then you’re probably no stranger to the concept of plagiarism! It’s something we’re taught to be aware of, scared of, opposed to, andâ€"above all elseâ€"avoid.  We’ve all seen how serious the consequences can be from stories at school and in the news: failing a class paper, being expelled from school, costing a job or money, and more. With so much at stake, the important question arises: how do we prevent it from happening in the first place? The simple answer is citing! That includes providing a full bibliography, and in-text citations (like APA or MLA parenthetical citations), where needed. To help you in your quest to avoid plagiarism, we’ve put together a simple infographic below. Using the flowchart, you can determine if you’re plagiarizing or how to avoid doing so. Feel free to print and share! Looking for citation help? Try . It’s free and easy to create citations in MLA citation format, or to read through our citation guides. Those with an EasyBib Plus subscription get the extra perks of creating citations in APA and other styles, and access to our automatic plagiarism and grammar checker. Check it out today! Worried about your grammar? Try the EasyBib Plus paper checker for suggestions on how to improve your writing and to spot accidental plagiarism before its a problem. Also, refresh your knowledge of the basics with our grammar guides on verbs, what is an adjective, the difference between proper and common nouns, and more!

Public Healthcare Policy - 692 Words

There is a confluence of factors that is related to providing adequate health care on a systemic basis within virtually any population setting. While attempting to address the health care needs of such a setting is always a challenge, this challenge becomes exacerbated by varieties in social and economic conditions, as well as those that apply to race and ethnicity. The problems that plague contemporary health care coverage in the United States are myriad and even more complicated by the fact that many of these issues are interrelated. Three of the most salient of these difficulties concern health care coverage, health inequities, and ineffective health promotion. However, prudent analysis of this topic indicates that of these three areas, the one that is most problematic is that of healthcare coverage. The logic behind this fact is fairly simple; improved health care coverage can ameliorate many of the issues that stem from ineffective health promotion and health inequities. It is a widely confirmed fact that in certain parts of the world such as Israel in which the law provides a standardized insurance package of medical services for all residents (Machnes, 2006, p. 265) there are a number of countries in which universal healthcare is a reality. In these countries, the amount of money spent on a per capita basis is oftentimes significantly less than that spent on a per capita basis is the United States. There is a distinct relationship between lack of healthcareShow MoreRelatedPublic Healthcare Policies, And Inadequate Health Awareness994 Words   |  4 PagesGrowing up a lower income community of Atlanta, Georgia allowed me to see 1st hand the perpetual cycle of absent public healthcare policies, and inadequate health awareness. My mother and aunts were results of this neglect and misguidance, consuming unhealthy diets, and sedentary lifestyles not realizing the damages they were causing to their bodies. 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You must do yourRead MoreCritical Analysis - The Models of Public Policy Essay example1278 Words   |  6 PagesAccording to William Jenkins (1989) public policy is a set of interrelated decisions taken by a political actor or a group of actors concerning the selection of goals and the means of achieving them within a specified situation where those situations showed in public policy be within the power of those actors to achieve. In this case, public policy involves making policies that are involved in enhancing health care reforms in the Canadian situation. Policies are often as a result of a multiple decisions

Symbolic Interactionist Perspective In Sociology - 1543 Words

Sociologists analyze and interpret social phenomena at different levels and from different perspectives. Sociologists study everything from specific behaviors on the micro level to generalized, big pictures on the macro level. Each palpable explanation and theoretical generalization of society and social behavior that sociologists provide, contribute to the understanding of complex behaviors we demonstrate everyday. Pioneering sociologists introduced a broad conceptualization of the fundamentals of society. These views are now the basis of which today’s theoretical perspectives are formed. (Contributors at CliffsNotes, 2016) A theoretical perspective, a set of assumptions about reality that demise the questions we ask and support the†¦show more content†¦Functionalist Perspective According to the Functionalist Perspective, also known as functionalism, each aspect of society is interdependent and the parts its people have in it all contribute to society’s functioning as a whole. Largely based on the works of Herbert Spencer, Emile Durkheim, Talcott Parsons, and Robert Merton, functionalism states that society is a system of interconnected parts that rely on each other to maintain balance and social equilibrium. Functionalism emphasizes the interconnectedness of society by focusing on the relationships and influences present in each part of society. Terms as functional and dysfunctional are often used by sociologists focusing on functionalism. Elements are said to be functional if they contribute to social stability and dysfunctional if they break the pattern of stability. (Crossman, 2017) Functionalists are described to defend the status quo, avoid social change, and believe people cooperate to effect social order. Functionalism addresses society as a whole by standards of norms, customs, traditions, and institutions. 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Mead, both of whom emphasized the subjective meaning of human behavior, the social process, and pragmatism. Herbert Blumer, who studied with Mead at the University of Chicago, is responsible for coining the term, symbolic interactionismRead MoreThe Theory Of Social Life1581 Words   |  7 Pages In order to interpret social life we have utilized three primary theoretical perspectives. In this paper I will summarize all three primary perspectives by identifying the role, figures and key concepts related to each of these three theories. I will then identify which of these three theories I find most useful in studying sociology today and then I will explain the rationale behind my selection. Finally, I will provide my own argument to the debate as whether the purpose of social research shouldRead MoreSymbolic Interactionism, By George Herbert Mead And Charles Horton Cooley937 Words   |  4 Pages Symbolic interactionism is a sociological perspective that is influential in many areas of the sociological discipline. It is particularly important in microsociology and social psychology. Symbolic interactionism is derived from American pragmatism and particularly from the work of George Herbert Mead. Herbert Blumer, a student and interpreter of Mead, coined the term symbolic interactionism and put forward an influential summary of the perspective: people act toward things based on the meaningRead MoreThe Core Concepts Of Sociology1578 Words   |  7 PagesThe core concepts of sociology are a combination of original theories with improved sociological approaches that build upon them over time. Sociology utilizes three main theories to approach the study of society with different focus points that result in different outcomes. Furthermore, as stated by Robert Faris and William Form from britannica â€Å"The early schools of thought each presented a systematic formulation of sociology that implied possession of exclusive truth and that involved a convictionRead MoreScociological1136 Words   |  5 PagesSociological Paradigms There are three sociological perspectives that shape the structure of society as a whole. Functionalist perspective, symbolic interactionism and conflict theory. Sociologists develop these theories to explain social phenomena. In this essay I will explain the origins and evolution of the three main sociological perspectives and listing the sociologists that made major contributions to these disciplines. â€Å"The functionalist perspective is a sociological approach which emphasizesRead More Social Phenomena Essay1118 Words   |  5 Pages(Kendall, 23). The three classic theories of sociology include the functionalist perspective, conflict perspective, and symbolic interactionist perspective. The functionalist perspective aims to explain sociological phenomena based on the belief that our society is a balanced system that depends on each part of the group to work together in order to survive. Most people in the group share that same morals and ethics. This varies greatly from the perspective of conflict theorists, who believe that each

Interesting Recycling Facts Free Essays

A running faucet wastes 2.5 gallons of water each minute. A dishwasher uses 11 gallons of water per use. We will write a custom essay sample on Interesting Recycling Facts or any similar topic only for you Order Now 75 percent of all water used in the household is used in the bathroom. A toilet made in 1992 or earlier uses up to 60 percent more water per flush than newer high efficiency toilets. Turning of the tap while brushing your teeth in the morning and before bedtimes can save up to 8 gallons per day. This is a savings of 240 gallons per month. Running your faucet for 5 minutes uses up enough energy to run a 60 watt light bulb for 14 hours. A full bath tub uses 70 gallons of water. A 5 minute shower only uses 10-25 gallons. Interesting Recycling Facts / Paper Recycling 1 ton of paper saves 17 mature trees, 7,000 gallons of water, 3 cubic yards of landfill space, 2 barrels of oil, and 4000 kilowatt hours of electricity. This is enough energy to power the average American home for 5 months. The process of recycling paper instead of making it from new materials generates 74 percent less air pollution and uses 50 percent less water. Manufacturing recycled paper uses 60 percent of the energy needed to make paper from new materials. Over 73 percent of all newspapers are recovered for recycling. About 33 percent of this is used to make newsprint the rest is used to make paperboard, tissue, or insulation. A little more than 48 percent of all office paper is recycled. This is used to make writing papers, paperboard, tissue, and insulation. Interesting Recycling Facts / Metal Recycling steel and tin cans saves 74 percent of the energy used to make them. Americans throw away enough aluminum every month to rebuild our entire commercial air fleet. Americans throw out enough iron and steel to continuously supply all the auto makers in the entire nation. A steel mill using recycled scrap reduces water pollution, air pollution, and mining waste by about 70 percent. When you throw away an aluminum can you waste as much energy as if you’d filled the can half full of gasoline and poured it into the ground. Americans use 100 million tin and steel cans each day. Recycling one aluminum can saves enough energy to run a 100 watt light bulb for 20 hours, a computer for 3 hours, and a TV for 2 hours. Interesting Recycling Facts / Plastic Enough plastic is produced in the United States each year to shrink wrap Texas. In 1998 Americans used 2 billion pounds of HDPE to make plastic bottles for household products. That’s the equivalent weight of 90,000 Honda civics. Approximately 88 percent of the energy is saved when plastic is made from plastic rather than from the raw materials of gas and oil. Enough plastic bottles are thrown away in the United States each year to circle the Earth four times. How to cite Interesting Recycling Facts, Essay examples

Case of BHP Billiton for Corporate Governance †Free Sample

Question: Discuss about the Case study of BHP Billiton for Corporate Governance. Answer: Introduction Corporate governance is a wide-term that incorporates the rules, policies, systems and processes that an organization adopts and implements in its workplace for carrying out its business operations effectively. The main objective of organizations behind the implementation and adoption of a governance framework is to develop a common set of guidelines that directs corporate behavior and ensures its sustainability. The corporate governance system of an organization aims to strengthen the relationship with its stakeholders thus ensuring its long-term growth and development. The development of an appropriate internal governance system is necessary for business organizations to maintain accountability in its operations and minimize the chances of risk occurrence (Corporate governance in Australia, 2003). In this context, the present report aims to analyze and examine the corporate governance practices of BHP Billiton by the application of the relevant concepts, standards and other guiding principles of corporate governance. The report also proposes some recommendations for the company for strengthening its corporate governance system. Brief Description of the BHP Billiton BHP Billiton is the Australian company and it is one of the largest resource companies in Australia. It was incorporated on 13 August, 1885 and the main activities of the company are exploration, mining, development, processing, production, marketing and production of different minerals. Some of the major minerals that company explores and mine are iron ore, potash, silver, nickel, uranium, manganese, aluminum, copper, coal etc. Apart from these activities company is involved in the process of development, production and marketing of conventional oil and gas in different parts of world (Company Profile, 2016). Corporate governance at BHP Billiton is taken as most important function and every activity is purely accounted and reported to management. BHP Billiton is committed to follow the highest level of governance and aims to promote foster environment through involving ethical standards, corporate integrity, personal behavior and respect to others. All the directors work independently to provide unbiased report to the stakeholders so that clear and fair picture of company performance can be seen. Functions and areas of directors are clearly defined and every single step is taken to avoid any regulatory issues. Company has clear set of corporate standards derived from the best class of standards provided by the corporate governance body. Each global function and marketing by BHP Billiton has clear accountability that is approved by the assigned executive directors. In short it can be said that BHP Billiton follows all the parameters that are required in corporate governance reporting (Governance, 2016). Criteria for the review of BHP Billiton Corporate governance Australian government has identified and adopted the best practices of corporate governance for business organizations with the development of ASX Corporate Governance Council. ASX governance council holds the responsibility of ensuring the presence of an effective governance system in Australian corporations (ASX Corporate Governance Council, 2014). It has established some core principles that underline good corporate governance system for a business organization that are as follows: Developing Solid Foundation for the Board and Management: Australian corporations should develop and disclose respective roles and responsibilities for board and management. This implies developing solid foundations for management and board of directors by establishing a clear difference between the business functions of the board and the management (Corporate governance in Australia, 2003). Effective Structuring of the Board: Businesses should form an effective composition of the board with uniform size and is committed adequately to discharge its duties and responsibilities. This indicates that board members should be independent of each other roles and responsibilities such as there should be independent directors, chairman, executive officer and nomination committed (ASX Corporate Governance Council, 2014). Integrating ethical and responsible decision-making: In this context, business organizations are required to develop their Code of Conduct that establishes their legal obligations and responsibilities towards the stakeholders. The Code of Conduct developed by a business organization also lays foundations for the nature of relationship existing between board, management and other operational employees (Corporate governance in Australia, 2003). Protect Integrity in Financial Reporting: Businesses should have an adequate structure to promote and protect integrity in their financial reporting. This can be achieved by business organizations by developing an audit committee that comprises of indent directors, non-executive directors, independent chairman and at-least three other members. The audit committee holds the responsibility of safeguarding integrity in financial reporting of a business firm (ASX Corporate Governance Council, 2014). Timely and Balanced Disclosure of Information: Business organizations are required to disclose all the materialistic information regarding its operations timely. This requires for business to develop written policies that mandates the senior executives to develop and communicate the material information regarding its activities to all the stakeholders regularly (ASX Corporate Governance Council, 2014). Protecting Shareholders Rights: Businesses should develop proper communication channel to disclose all the important facts and figures to its shareholders for encouraging their participation in the decision-making practices. This will help the businesses to maintain accountability in their operational activities and gain the trust of all its shareholders (ASX Corporate Governance Council, 2014). Effective Risk Management: Business organizations should establish an effective system for identifying and mitigating the risk. This can be achieved by businesses by developing and implementing an internal control system that manages all the materialistic risk related with its operational activities. The internal control system is necessary for business organizations to identify any type of risk in advance so that prevention strategies can be implemented to eliminate its occurrence (ASX Corporate Governance Council, 2014). Fair Remuneration: Businesses should ensure that the level and composition of remuneration is sufficient and it is in direct relation with the performances. This can be achieved by business organizations by developing a remuneration committee that establishes the remuneration of executive, non-executive and senior management. (ASX Corporate Governance Council, 2014). Critical review of the organizations governance applying the ASX Corporate Governance Principles BHP Billiton is committed to highest level of performance with implementing an effective corporate governance system. It has strived to develop a work culture that is based on the ethical standards, corporate integrity and respect or others (BHP Billiton, 2016). In accordance with ASX listing rule, BHP Billiton has clearly distinguished the roles and responsibilities of the board and the management. The Board is appointed by the shareholders and is uniformly composed. It consists of majority of non-executive directors who carry out their roles and responsibilities independently and does not hold any responsibility with other groups of people who can influence their decision-making process. The Board maintains an appropriate balance between non-executive and executive directors for maintain the shareholder interests. Directors of the group should possess the qualifications of honesty and integrity and are committed to highest standards of governance (Board Governance Document, 2016). The board holds the responsibility of reviewing the skills and Competencies of each of its member and should determine whether the composition of these skills is in accordance with the corporate purpose. BHP maintains independence of directors by ensuring that majority of the board members are independent and also all the members of risk, audit and remuneration committee also conducts their responsibility in an independent manner. The Board holds the authority of maintaining independency of directors from the management, shareholders group and administrator and ensuring that all directors take independent judgment on the board decisions (Board Governance Document, 2016). BHP Billiton has also developed its unique Code of Conduct to act ethically and responsible in its decision-making practices. The companys Code of Business Conduct develops the standard for conducting its operational activities by providing guidelines to everyone involved in its decision-making process (Code of Business Conduct, 2016). These guidelines govern and monitor the regular work activities of the company by determining the culture and values that each of its employees must adhere to while performing their job role. BHP Billiton encourages the development of a workplace where employees are empowered to participate in the decision-making process. The companys supervisors and managers holds the responsibility of ensuring that Code of Conduct is followed by employees and they are involved in all the decisions taken by the management. The company also provides a global business conduct advisory service for resolving the queries and issues related to its ethical obligations (Code of Business Conduct, 2016). The company maintains integrity in its financial reporting system through establishing an audit committee that holds the responsibility of supporting and advising the board regarding the appropriateness of accounting policies and practices (Risk and Audit Committee Terms of Reference, 2016). The committee is responsible for monitoring the effectiveness of internal and external audits carried by the company. It holds the power of implementing changes in the financial reporting framework of the company. The committee reviews and examines the financial statements and other information related to financial condition of the company with management and external auditors to maintain their integration. It provides its suggestions to the board on the matters relating the fairness and balance of annual report so that is understandable and provides all the relevant financial information to all its stakeholders (Risk and Audit Committee Terms of Reference, 2016). BHP Billiton complies with the disclosure obligations through developing a Market Disclosure and Communications Document (Market Disclosure and Communications, 2015). The document contains all the materialistic information regarding the company about its internal processes and the communication strategies adopted by it to interact with shareholders and other market participants. The company has also established its Disclosure Committee that holds the responsibility of ensuring that all materialistic information is reported to the stick exchange according to the listing rules and regulations. The corporate governance framework of the company ensures that BHP provides timely and accurate information about its financial performance, strategies and operational activities to all the shareholders and public in general. In addition to this, the communication policy of the company also protects the rights of its shareholders by providing them all the information regarding the companys perfor mance. Disclosure officers are obliged to provide all the material information to the shareholders and also ensure that the information discloses is true and not misleading in nay regard. The communication policy of the company also takes into account that any sensitive information is not provided to any third party (Market Disclosure and Communications, 2015). BHP has also established its independent risk committee to support the Board in matters relating to the occurrence of nay emergency condition. It reviews the major risks faced by the company that can negatively impact its performance and sustainability. The CEO develops effective procedures and standards to be adopted for mitigating the risk identified. The committee also ensures that CEO has implemented an appropriate internal control system to identify, manage and control the risk (Risk and Audit Committee Terms of Reference, 2016). The board has the obligation of maintaining the independency of the risk committee developed for maximizing its effectiveness. The committee will govern that the company has maintained an effective system of internal control over financial reporting necessary for ensuring its sustainability and long-term growth. The risk committee has to also ensure that the company has maintained an effective internal audit committee and carried out its functions indep endent of external audit committee. The CEO has to present the results obtained through internal control and risk management to the risk committee for enhancing the companys operational effectiveness. The risk committee develops and implement necessary strategy and standards required for managing and controlling the organizational risks (Risk and Audit Committee Terms of Reference, 2016). BHP Billiton has also developed its independent remuneration committee for rendering its support to the board members on the issues relating to compensation. The committee is responsible for acting as advisory body to Board in matters related to the development of remuneration policy that decides the compensation offered to senior executives, non-executives and other management people. It also ensures that the remuneration received by everyone in the company is directly related with their performances. Remuneration committee conducts performance evaluation, develops incentive plan and governance responsibilities related to the compensation. The committee does not hold any responsibility of determining the remuneration offered to Chief Executive Officer (CEO), and other members of the Operations Management Committee (OMC). Thus, on the basis of all the above discussion held it can be stated that BHP Billion has implemented a strong corporate governance framework that is in accordance with ASX corporate governance principles and standards (Remuneration Committee Terms of Reference, 2016). Recommendations To provide for better corporate governance policies in BHP Billiton following recommendations are provided: It is essential to establish a positive communication channel between management and with all the other stakeholders as investors, employees and other important stakeholders have direct interest with company growth. Company need to recognize that good governance is not a hard compliance but it is something that balances the overall growth of company taking all aspects of social as well as corporate responsibility. It is must to have clear role and strategy for each director so that all activities go smoothly and also help the owners to keep the directors independent. It is duty of directors to pursue and keep a check on the organization performance on timely basis and there should be proper channel for reporting (Corporate governance, 2013). Conclusion At last it can be concluded that corporate governance is not only the compliance requirement but it is social reasonability of everyone in the organization. BHP Billiton confers with the corporate governance with applying best practices and standards defined by Australian Stock Exchange. Still there are some recommendations provided above that can help them to make corporate governance stronger. References ASX Corporate Governance Council. 2014. [Online]. Available at:https://www.asx.com.au/documents/asx-compliance/cgc-principles-and-recommendations-3rd-edn.pdf[Accessed on: 8 September 2016]. BHP Billiton. 2016. Corporate Governance. [Online]. Available at: https://www.bhpbilliton.com/aboutus/ourcompany/governance[Accessed on: 8 September 2016]. Board Governance Document. 2016. [Online]. 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