The Australia’s favourite lawyer named Rowena Orr has asked a question: If the director of the company asks question and that question was not mentioned in the minutes, did the event actually occurred? A key personnel who is with the Royal Commission has blamed the chairman of Commonwealth Bank of Australia (ASX: CBA) named Catherine Livingstone by stating that the bank was unable to comply with the statutory obligations of the Corporations Act as the bank had failed to keep the accurate minutes from the board meetings. The bank’s chairman has revisited the case where the bank’s issues with the AUSTRAC or Australian Transaction Reports and Analysis Centre in regard to the anti-money laundering provisions were thrashed out.
The chairman of Commonwealth Bank of Australia stated that she was unable to recall when that whether she had challenged the management in the December meeting or in the October meeting. However, later on, after thinking on the issue, she stated that she had challenged the board in an October meeting. Additionally, she told Rowena Orr that management and the internal audit were unable to articulate the problem which was supposed to be solved let alone figuring out the problem’s root cause. She also added that the management didn’t have the capacity. However, Rowena Orr took the bank’s chairman to the minutes of the board meeting which held in October and in that it was mentioned regarding the receipt of the report in regard to the matter of the AUSTRAC. However, the lawyer asked the chairman that where, in the minutes, it is written about the Livingstone’s challenge. The chairman replied that she did ask the question and also received the response.
The lawyer then stated that why the key points discussed in the meeting wasn’t reported in the minutes. However, the chairman replied not everything which is being discussed in the meeting needs to be mentioned in the minutes of that meeting. She also added that under her chairmanship, the practice of the recording minutes has been improved. She stated that if the information related to challenging the management on the matter of AUSTRAC is not mentioned in the minutes of the meeting, it does not mean she didn’t challenge. The lawyer further asked the chairman if the bank was aware of the statutory responsibilities with respect to the minutes of the board. After further investigations of the board papers, it was found that there was a lack of other details in regard to the questions which were put out in the meeting regarding the AUSTRAC matter. The chairman again stated that it does not mean the event did not occur.
At the time of writing, Commonwealth Bank of Australia is trading at A$69.760 per share which reflects a rise of A$0.560 per share or 0.809%. The bank has a market capitalization of about $122.5 billion. The bank has an annual dividend yield of 6.23%, and the stock price of CBA is trading towards the lower range.
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