HOW TO USE THE CODE

Principles -  these represent high-level concepts that encapsulate the foundation of good corporate governance. All organizations should always maintain consistency with the spirit of each Principle when implementing a key aspect of practice established in the Code. 

Rationale - these represent the reasons behind each principle and is intended to assist organizations in further understanding why consistency with the spirit of the principles is necessary.

Key aspects of practice - these are specific practices that organizations are encouraged to apply as part of their governance system. They are applicable to companies with public accountability and other forms of business enterprises, including private companies, state agencies, not-for-profits, non-governmental organizations, charities, family-owned businesses, partnerships and membership associations and are subject to the size, complexity and unique context of each business enterprise. They are intended to be neither prescriptive nor exhaustive. Publicly listed companies are expected to disclose in their annual reports whether they have applied these aspects set out in the Code or explain the reasons for non-compliance. 

Expected outcomes - these represent the benefits to be derived from applying the key aspects of practice relevant to each principle. Governing bodies are encouraged to implement the practices to increase the probability of realizing the expected outcomes.