In and around 1900s, there had been a large number of corporate scandals. This led to the creation of a huge corporate risk. In order to ensure that the corporate works in a proper manner, the corporate governance was introduced. The term “corporate governance” can be defined as the framework of a number of rules, relationships, systems and different kinds of processes which help the authorities to exercise and control the corporations. There are a number of principles and recommendations made by the ASX for the corporate governance practices for all the entities which have been listed by ASX (Kamel, 2013). This has been done in order to meet the expectations of most of the investors and control the corporate scams. The ASX council has created different kinds of government practices on the basis of a number of factors. In this report the discussion will be done on the relevance of the principles and recommendations on the companies which are controlled by families. The report will analyze the principles and recommendations which have been made for the family controlled companies and will further analyze that how effective are the same.
Thus it is very important to have the proper rights and regulations for the family listed companies. It is useful both for the smooth and the successful running of the company and also to ensure that the rights of the shareholders and other stakeholders should be protected. In this research, the discussion has been done on the relevance of the principles and recommendations which are provided for the family listed companies. The complete analysis of the relevance of the principles and recommendations has been provided. It has been identified that the principles protects both the rights of the shareholders and ensure consistent and successful operation of the companies.