Australian Corporate Acts Review
http://www.abc.net.au/pm/content/2005/s1350958.htm
The victorian government sacked the board of a regional hospital for alleged financial management but since the inquiry has found that allegations against board members could not be sustained and police major squad concluded that no criminal offence had been committed at the hospital. The issue was the poor financial performance of the hospital and the payment of $103,000 to the Chairman of the board for business class travel from Europe and Dubai to Sale for monthly board meetings. Even after the declaration by the police squad that no crime is committed health minister is standing by her decision to sack the board. According to the writer the issue of the corporate governance was an important factor because when the hospital was already struggling with the budget there was no right decision by the chairman to use large funds for business class flights. The corporations Act 2001(cth) in section 53(Affairs of body corporate), 53AA(Business affairs of body corporate) there are the regulations to deal with such conditions.
(NOTE: EXPLAIN THE FUNCTION OF CORPORATIONS ACT 2001 )
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