Case Study : Uk Corporate Governance

2013 Words Dec 10th, 2014 9 Pages
Question 1:
UK Corporate Governance claims that the composition of an organization’s main board and audit committee should consist of at least half of the independent non-executive directors in the memberships. The composition of Retail PLC’s main board and audit committee made up by two executive directors which are the CEO, Andrew Thompson and the finance director, William Henley whereas the non-executive directors are the audit committee chair, Terry Muir and the former chair audit committee who is a charted accountant. Based on the evaluation, we found that there are advantages and disadvantages of the composition of Retail PLC’s main board and committee. The advantages are that with combination of executive and non-executive directors in the membership could improve the development of new skills. Other than that, discussion of business issue may become more rationale as executive and non-executive directors might come out different point of view, hence having balancing elements. Others perspective out of the box could be bring in to the business strategy as well. However the disadvantages of the firm is that interest of non-executive directors tend be more delicate compare to the executive directors who are more concern with the company performance. The structure of the board that has more executive directors will work in company’s favor. However, the board does not fulfill the requirements as stated in UK Corporate Governance Code which mentioned at least half…
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