However, when the extent of the alleged malfeasance was made public. Blatter announcedhis resignation from the presidency four days later, declaring that: "FIFA needs a profoundrestructuring."The beginning of the end for Blatter came on September 25,2015, when Swiss investigatorsissued criminal proceedings against him in relation to the assignment of valuable World Cuptelevision rights to former FIFA official Jack Warner for a fraction of their true value. Thecontract dated back to 2005 when the Carribbean broadcast rights for the 2010 and 2014World Cups were sold to Warner for a mere $600,000. He then sold those rights to a Jamaicabased cable television station for an alleged $15 million to $20 million profit.THE END OF A DARK ERAIn the face of mounting allegations against Blatter, long time FIFA sponsors, includingMcDonald's, Visa, Coca-Cola, and Anheuser-Busch InBev, began calling for Blatter to sever allties with FIFA, labelling him as an obstacle to reform. Blatter remained defiant, even in theface of a formal suspension by the organization's ethics committee for 90 days. On December21, 2015, Blatter and Michel Platini, the president of UEFA, European football's governingbody, were found guilty of ethics violations by FIFA's ethics committee and barred from thesport for eight years. Both men appealed the decision to the Court of Arbitration for Sport,and their ban was reduced to only six years.On February 25, 2016, 45-year-old Gianni Infantino, the former general secretary of UEFA,was appointed as Blatter's successor as the ninth president of FIFA on a platform thatcommitted to restoring "the image of FIFA and the respect of FIFA." Blatter, who turned 80in March 2016, announced: "With the adoption of [reforms), expectations on him will be evenhigher. But I am convinced that my successor will put them in place.I had this burden on me.And now it is finished."In June 2018, Blatter attended the World Cup in Russia as the invited guest of PresidentVladimir Putin in spite of his six-year ban. When asked about how the visit would be perceivedby FIFA, Blatter responded: "It will be a sporting and diplomatic mission for me."Required:(a) Explain the steps should be taken by the new president of FIFA to restore the corporategovernance.(b) In your opinion, review the value added of the outside directors in the board ofcorporation. A SPECTACULAR DOWNFALLThe sport of soccer, known as football outside of North America, was tarnished by evidenceof bribery and corruption at FIFA, football's global governing body. In particular, the culturecreated under FIFA's defiant president, Joseph "Sepp" Blatter, appeared to endorse greed ona spectacular scale as votes from FIFA delegates were allegedly made available for sale ascountries sought to win the rights to host the World Cup every four years.When 14 FIFA officials were arrested in their Zurich, Switzerland, hotel rooms on May 27,2015, on the eve of a congress meeting, the world of soccer was taken by surprise, especiallysince those arrests were made at the request of the U.S. Department of Justice (DOJ). ByDecember 2015, a total of 16 officials had received a 92-count indictment on criminal chargesincluding racketeering, money laundering, and wire fraud amounting to more than $150million over the past 24 years.The money was allegedly received from national sports associations seeking to influence theappointment of host cities for World Cup championships, and from companies withcommercial connections to FIFA seeking "lucrative media and marketing rights" to FIFAtournaments. The scheduled World Cup championships in Russia (2018) and Qatar (2022)came under particular scrutiny, with the award to Qatar raising the most suspicions, sincefootball would be a very difficult sport to play in the average 100 to 115 degree heat andstifling humidity of a Qatari summer.THE BLATTER REIGNWhile the DOJ arrests prompted worldwide media coverage, sports media journalists andofficials were less surprised. Blatter's 17-year reign as FIFA's eighth president had beenmarried by frequent allegations of corruption from the day he won the office in 1998 afterserving 17 years as the top deputy to the retiring president, Joao Havelange. The vote againsthis Swedish rival, Lennart Johansson, was very close, leading to bribery allegations that wereproven.Toward the end of his first term in office, Blatter was implicated in the bankruptcy of FIFA'smarketing partner, International Sports and Leisure (ISL) that collapsed with debts of morethan $100 million. While investigations verified kickbacks to FIFA executives amounting totens of millions of dollars, Blatter walked away with an assessment of "clumsy" conduct butno evidence of criminal or unethical behaviour.Over the next decade, Blatter was connected to numerous scandals related to bribes, financialmismanagement, and highly questionable tactics during re-election campaigns, but emergedunscathed. In 2011, FIFA convened an independent panel to propose governance reforms inthe face of increasing criticism over the conduct of Blatter and his team of senior executives.Recommendations of fixed terms, age limits, and increased transparency of associationfinances were ignored. Those that sought to challenge Blatter in elections or in the proposalof policy changes were rewarded with a swift departure from the organization.It is a testament to Blatter's apparent control over FIFA that he was re-elected for a fifth termas president immediately following the May 27, 2015, arrests. He responded to the actions ofthe DOJ and British media in covering the story by saying: "I forgive but I don't forget".

Question

However, when the extent of the alleged malfeasance was made public. Blatter announcedhis resignation from the presidency four days later, declaring that: &#34;FIFA needs a profoundrestructuring.&#34;The beginning of the end for Blatter came on September 25,2015, when Swiss investigatorsissued criminal proceedings against him in relation to the assignment of valuable World Cuptelevision rights to former FIFA official Jack Warner for a fraction of their true value. Thecontract dated back to 2005 when the Carribbean broadcast rights for the 2010 and 2014World Cups were sold to Warner for a mere $600,000. He then sold those rights to a Jamaicabased cable television station for an alleged $15 million to $20 million profit.THE END OF A DARK ERAIn the face of mounting allegations against Blatter, long time FIFA sponsors, includingMcDonald's, Visa, Coca-Cola, and Anheuser-Busch InBev, began calling for Blatter to sever allties with FIFA, labelling him as an obstacle to reform. Blatter remained defiant, even in theface of a formal suspension by the organization's ethics committee for 90 days. On December21, 2015, Blatter and Michel Platini, the president of UEFA, European football's governingbody, were found guilty of ethics violations by FIFA's ethics committee and barred from thesport for eight years. Both men appealed the decision to the Court of Arbitration for Sport,and their ban was reduced to only six years.On February 25, 2016, 45-year-old Gianni Infantino, the former general secretary of UEFA,was appointed as Blatter's successor as the ninth president of FIFA on a platform thatcommitted to restoring &#34;the image of FIFA and the respect of FIFA.&#34; Blatter, who turned 80in March 2016, announced: &#34;With the adoption of [reforms), expectations on him will be evenhigher. But I am convinced that my successor will put them in place.I had this burden on me.And now it is finished.&#34;In June 2018, Blatter attended the World Cup in Russia as the invited guest of PresidentVladimir Putin in spite of his six-year ban. When asked about how the visit would be perceivedby FIFA, Blatter responded: &#34;It will be a sporting and diplomatic mission for me.&#34;Required:(a) Explain the steps should be taken by the new president of FIFA to restore the corporategovernance.(b) In your opinion, review the value added of the outside directors in the board ofcorporation. A SPECTACULAR DOWNFALLThe sport of soccer, known as football outside of North America, was tarnished by evidenceof bribery and corruption at FIFA, football's global governing body. In particular, the culturecreated under FIFA's defiant president, Joseph &#34;Sepp&#34; Blatter, appeared to endorse greed ona spectacular scale as votes from FIFA delegates were allegedly made available for sale ascountries sought to win the rights to host the World Cup every four years.When 14 FIFA officials were arrested in their Zurich, Switzerland, hotel rooms on May 27,2015, on the eve of a congress meeting, the world of soccer was taken by surprise, especiallysince those arrests were made at the request of the U.S. Department of Justice (DOJ). ByDecember 2015, a total of 16 officials had received a 92-count indictment on criminal chargesincluding racketeering, money laundering, and wire fraud amounting to more than $150million over the past 24 years.The money was allegedly received from national sports associations seeking to influence theappointment of host cities for World Cup championships, and from companies withcommercial connections to FIFA seeking &#34;lucrative media and marketing rights&#34; to FIFAtournaments. The scheduled World Cup championships in Russia (2018) and Qatar (2022)came under particular scrutiny, with the award to Qatar raising the most suspicions, sincefootball would be a very difficult sport to play in the average 100 to 115 degree heat andstifling humidity of a Qatari summer.THE BLATTER REIGNWhile the DOJ arrests prompted worldwide media coverage, sports media journalists andofficials were less surprised. Blatter's 17-year reign as FIFA's eighth president had beenmarried by frequent allegations of corruption from the day he won the office in 1998 afterserving 17 years as the top deputy to the retiring president, Joao Havelange. The vote againsthis Swedish rival, Lennart Johansson, was very close, leading to bribery allegations that wereproven.Toward the end of his first term in office, Blatter was implicated in the bankruptcy of FIFA'smarketing partner, International Sports and Leisure (ISL) that collapsed with debts of morethan $100 million. While investigations verified kickbacks to FIFA executives amounting totens of millions of dollars, Blatter walked away with an assessment of &#34;clumsy&#34; conduct butno evidence of criminal or unethical behaviour.Over the next decade, Blatter was connected to numerous scandals related to bribes, financialmismanagement, and highly questionable tactics during re-election campaigns, but emergedunscathed. In 2011, FIFA convened an independent panel to propose governance reforms inthe face of increasing criticism over the conduct of Blatter and his team of senior executives.Recommendations of fixed terms, age limits, and increased transparency of associationfinances were ignored. Those that sought to challenge Blatter in elections or in the proposalof policy changes were rewarded with a swift departure from the organization.It is a testament to Blatter's apparent control over FIFA that he was re-elected for a fifth termas president immediately following the May 27, 2015, arrests. He responded to the actions ofthe DOJ and British media in covering the story by saying: &#34;I forgive but I don't forget&#34;.

Accepted Answer

Corporate Governance is the system in which Board of Directors is responsible to set certain…