The UK Corporate Governance Code (2018) gives guidance on Division of Responsibilities. Which TWO of the following are principles which apply in this area? A. The board should include an appropriate combination of executive and non-executive (and, in particular, independent non-executive) directors, such that no one individual or small group of individuals dominates the board’s decision-making. There should be a clear division of responsibilities between the leadership of the board and the executive leadership of the company’s business. B. The roles of chief executive and company secretary should be done by the same person where possible. C. Full time executive directors are actively encouraged to take on additional non-executive directorships in other companies. D. The chair leads the board and is responsible for its overall effectiveness in directing the company. They should demonstrate objective judgement throughout their tenure and promote a culture of openness and debate. In addition, the chair facilitates constructive board relations and the effective contribution of all non-executive directors, and ensures that directors receive accurate, timely and clear information. E. Decisions made by the executive directors will always be considered as being priority. Non-executive directors should not question any decisions made by executive directors.
The UK Corporate Governance Code (2018) gives guidance on Division of Responsibilities.
Which TWO of the following are principles which apply in this area?
| A. |
The board should include an appropriate combination of executive and non-executive (and, in particular, independent non-executive) directors, such that no one individual or small group of individuals dominates the board’s decision-making. There should be a clear division of responsibilities between the leadership of the board and the executive leadership of the company’s business. |
|
| B. |
The roles of chief executive and company secretary should be done by the same person where possible. |
|
| C. |
Full time executive directors are actively encouraged to take on additional non-executive directorships in other companies. |
|
| D. |
The chair leads the board and is responsible for its overall effectiveness in directing the company. They should demonstrate objective judgement throughout their tenure and promote a culture of openness and debate. In addition, the chair facilitates constructive board relations and the effective contribution of all non-executive directors, and ensures that directors receive accurate, timely and clear information. |
|
| E. |
Decisions made by the executive directors will always be considered as being priority. Non-executive directors should not question any decisions made by executive directors. |
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