The main purpose of the Corporations Act is to:
A) develop and promulgate approved accounting standards.
B) ensure that auditors conducting financial statement audits are registered.
C) give legislative backing to the Australian Securities Exchange's Listing Rules.
D) establish appropriate corporate governance mechanisms to promote appropriate decision making by participants and managerial accountability to shareholders.

Question

Quizplus · Accepted Answer

The main purpose of the Corporations Act is to establish appropriate corporate governance mechanisms to promote appropriate decision making by participants and managerial accountability to shareholders. The Act aims to regulate the conduct of companies, directors, and shareholders to ensure that they act honestly, fairly, and in the best interests of the company and its stakeholders. The Act also provides for the regulation of financial reporting and compliance with accounting standards, but this is not the main purpose of the Act. Additionally, while the Act does require auditors to be registered, this is not its primary purpose. Finally, while the Act does have some interaction with the Australian Securities Exchange's Listing Rules, this is not its main purpose.

The Main Purpose of the Corporations Act Is To