Breadtalk Group Limited had outlined areas that needs to improves. Firstly, under principle 1under board matters(breadtalk annual 2010 report,pg 32), despite directors are being appointed to the board by a formal letter of appoinment indicating the amount of time required and scope of duties, some directors espicially new directors are not clearly aware of discharging their duties. Board members needs more update and initaitive to gain better understanding of the group business operations and policies. Thus board members are encouraged to attend comprehensive orientation programme , seminars and trainings to improve their capabilities in discharging their duties. This control measure is to ensure that the board members are in-line with …show more content…
This will review any conflict of companies interest within the board members.
Overall, by comparing these two companies. Old Chang Kee Ltd has a smaller appriopriate of board members to effectively facilitate the operations of the group with the right duties, expertise and experience. Hence, the commitment level within the board members is higher and the operations of the group is more managable from time to time. Conflicts are interest are constanly reviewed. Unlike Breadtalk, as is more board members, there will be greater unresolved conflicts of interest within the board members.Especially board members that does not have the adequate skills and experience will either fall behind or conflict with the companies interests.
Gearing Ratio:
Gearing refers to the amount of debt finance a company uses relatives to its equity finance. It is a measure of capital structure and basically there are three methods to calculate gearing ratios:
1. Book values and including all borrowings;including short-term borrowings.
2. Long-term loans and equity at book value
3. Market values and including all borrowings.
2 methods were adopted for calculating gearing rations(total borrowings divided by total equity) and net gearing ratio(total borrowing less cash and cash equivalents divide total equity).(source: breadtalk annual report 2010, pg 139).Gearing ratio will be examined to find out the debts Breadtalk has. The ratio
Ganong Bros. Limited (GBL) was founded in 1873 by two brothers in St. Stephen, New Brunswick and has gone through 4 generations of remaining a private family firm. The firm is an international company with exports to middle east and Japan. As well as a factory in Thailand. Over the past couple years GBL has shown a financial loss. GBL is a The board of directors consisting of 6 external members and 2 family members, have decided to give David Ganong, president of GBL, 6 weeks to come back with recommendations that would be able to restore the company to profitability and increase productivity.
The aggressive board challenges by Biglari have resulted in defensive moves by the current directors. Biglari has been vocal in his attempt to leverage his 10% stake in the company and desire to join the board of directors. In reaction to this move the board of directors has appointed additional like-minded directors to help move the company forward into an
Gill puts forth his four pillars of excellence in which he thinks every good board possessed. These pillars are Board Development, Management of board work and meetings, decision making and . board and organizational culture.Throughout this paper I will show how after the departure of sarah the league designed and created a good board by implementing each pillar.
The next thing the board needs to do is understand what it was created to do and what each person's responsibilities are. A document should be created for all board members to review that outlines the three duties(duty of care, duty of loyalty, and the duty of obedience) as well as all legal responsibilities of the collective board and provide detailed descriptions of each position. This process will ensure that the board
6. Debt Ratio: This nifty ratio is found by taking total debt over/divided by total assets. This directly shows the amount of debt a company has relative to its assets.
Leverage ratios examine the organization’s use of debt to finance its assets and its ability to meet the interest payments. Common leverage ratios include debt to assets and times interest earned.
Any profits remaining after deducting operating costs, interest payments, taxation, and dividend are reinvested in the business and regarded as part of the equity capital. The finance manager will monitor the long-term financial structure by examining the relationship between loan capital, where interest and loan repayments are contractually obligatory, and ordinary share capital, where dividend payment is at the discretion of directors. This is known as gearing. There are two basic types of gearing, they are capital gearing which indicates the proportion of debt capital in the firm’s overall capital structure; and income gearing indicates the extent to which the company’s income is pre-empted by prior interest charges. Both are indicators of financial gearing.
Information needs should be the driving force behind information systems. An information need is a business’s requirement to capture a specific piece of information or set of information points to meet a business necessity.
Members Characteristics – Overall, Hausman did a good job on assembling his board of directors. When determining who will make a good board member there are several things to look for. First a good board has an expert in legal matters, accounting, marketing, human resources, and finance. The only expert missing from RO’s board is a human resources expert. Next it is important to ensure that all board members will be able to regularly attend meetings. While most board members were local, several were not, and it was an area RO could improve. Also for outside members of the board, it is important to have knowledge of the industry and/or target market. With the appointment of the EVP of a large health snack company, Hausman made a good appointment (although location is an issue), but the knowledge that the CEO of the tech company may bring to the table may not be valuable. Finally, it is important to have complimentary personality traits. Overall, the RO’s board of directors is a strong, valuable board.
This company in recent past was floundering under a leadership and management style that had become bloated and unproductive. The board of directors had swelled to more than 50 members with no clear lines of communication between the board, the CEO, and management. This created a void as directives and tasks became poorly understood and remained unfinished. The goals of
Q: Was the decision to attract ultra HNI customers through a separate dedicated branch a good idea?
Arthur W. Perdue’s quest for excellence in the poultry business began in 1917. Perdue started his company as a table-egg poultry farm. He slowly expanded his egg market by adding a new chicken coop every year. Arthur’s son Frank joined the family business in 1939 after leaving school at the end of his the second year. In 1950 Frank took over leadership of Perdue Farms, which had over 40 employees at the time.
Before beginning an analysis of a company it is necessary to have a complete set of financial statements, preferably for the pas few years so that historical trends can be obtained. Ratios are a way for anyone to get an idea of the financial performance of a company by using the information contained in the financial statements. Ratios are grouped into four basic categories, liquidity, activity, profitability, and financial leverage. This document will use a variety of these ratios to analyze the firm, Sample Company, as of December 31,2000.
The board consisted of the leaders of their own fields. It included physicians, lawyers, politicians and some of the former CEOs of airline industry. The board was relatively new and the most severe member had been there for four years. The risk management was the major issue which attracted most attention of the board and they dedicated more time on attention n risk management since the financial collapse.
From the 2001 projections, the company`s sales revenues reached the 90.9 million mark in 2001 representing a 15 million rupees growth over the previous year. Despite this remarkable increase, there are a number of financial challenges that must be taken into account when evaluating the forecast. For example, based on the company`s total assets turnover which tells how efficient the company is using its assets to generate sales, Kota`s total assets turnover ratio is suboptimal. In 2000, the