According to Cadbury Report, Corporate Governance is “the system by which companies are directed and controlled (Keasey, et al, 2005). Furthermore, Cadbury recognized that a system of good corporate governance allows boards of directors to be “free to drive their companies forward”, but exercise that freedom within a framework of effective accountability. Johnson, Scholes, et al (2005) consider that the governance framework describes whom the organization is there to serve and how the purposes and priorities of the organization should be decided, and this concerns how an organization should function and the distribution of power among different stakeholders. These authors consider that corporate governance has become an increasingly important issue for organizations.

Required: Assuming you are a Corporate Governance consultant with a fairly good understanding of corporate governance and the issues as explained by the authors;

A) Mention five (5) factors you would consider when preparing a board manual for the board on the characteristics of board composition? 

B) Assuming you are a member of the board of the directors in a private oil company and you served on any of the known committees,

(i) In five (5) ways, discuss how you will perform your duties? 

(ii) Discuss five (5) types of liabilities you would incur if you fall foul of the principles of corporate governance and the Companies Act (2019)?

Answer rating: 100% (QA)

Answer Explanation A 5 factors that should be viewed as while preparing a board manual for the board on the characteristics are 1 Supply chain management Supply chain risk management guarantees that p... View the full answer