Badwin Ltd is a rapidly growing company presently owned by the Badwin family. It sells designer clothing and accessories that it sourced from around the world and the trading result are exceeding expectations. The family is looking to cash in on the success of the business and also provide some capital for expansion, so they have decided to float the company on the stock exchange.

At present, the board of directors consists of Mark Badwin who is the Chairman and Managing Director, and his two sons David and John who are Sales and Buying Directors respectively. They are going to appoint Bill Struter who is presently the Chief Accountant, as Financial Director just before flotation.

The Auditor, T & R are a little concerned that the Stock Exchange will find the level of Corporate Governance unacceptably low, if not actually non-existence, and they think they should tell Mark Badwin, who is dogmatic and not a man who like others interfering in his business, what he need to do to comply with aspects of the listing agreement.

Required

1. Explain the argument for and against the application of OECD corporate governance principles
2. What will Badwin Ltd need to do in order to start complying with some of the key aspects of Corporate Governance?