Corporate governance and the OneTel collapse

Monem (2011) explores the relationship between corporate governance and corporate collapse, with particular reference to the OneTel case. He suggests that "firms with weaker corporate governance than others are more likely to collapse, and the demand her good corporate governance heightens in the wake of poor firm performance"

In response to collapses such as that of OneTel, the ASX Corporate Governance Council released the first edition of Principles of good corporate governance and best practice recommendations in 2003. The third edition of this document, ASX Corporate Governance Principles and Recommendations, was released in 2014 [ASX Principles]. These principles are designed to provide best practice guidance for listed companies and to increase the transparency of corporate governance practices for investors and other corporate stakeholders.

Required:

1. Identify the ASX Principles (2014) that may have been relevant to the OneTel case, and discuss how rigorous application of these principles may have averted the collapse.

2. Discuss the notion that compliance with a written code (such as the ASX Principles) is sufficient to guarantee sound corporate governance practices and ethical behaviour by company management.

References: Your essay should refer to at least 8 relevant sources, of which at least 6 must be academic journal articles.