The finance director has two potential non-executive directors he is considering to join the board of...

 

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The finance director has two potential non-executive directors he is considering to join the board of Natco, a company in the banking sector. Les Thomas is currently an executive sales director of a listed multi-national banking company; he sits on another company's audit committee as a non-executive director, and he is agreeable to being paid a fixed fee, which is not related to profits. Martin Ballard is currently a finance director of a small van rental company, which does not compete with Natco; he has expressed an interest in a fixed seven-year contract and he is the brother of Natco's chief executive. Required: (a) Name and describe the remit of the main committees recommended by the UK corporate governance code. (b) Identify and evaluate THREE advantages and THREE disadvantages of appointing: i. ii. Les Thomas Martin Ballard The finance director has two potential non-executive directors he is considering to join the board of Natco, a company in the banking sector. Les Thomas is currently an executive sales director of a listed multi-national banking company; he sits on another company's audit committee as a non-executive director, and he is agreeable to being paid a fixed fee, which is not related to profits. Martin Ballard is currently a finance director of a small van rental company, which does not compete with Natco; he has expressed an interest in a fixed seven-year contract and he is the brother of Natco's chief executive. Required: (a) Name and describe the remit of the main committees recommended by the UK corporate governance code. (b) Identify and evaluate THREE advantages and THREE disadvantages of appointing: i. ii. Les Thomas Martin Ballard

Answer rating: 100% (QA)

The UK corporate governance code recommends three main committees the audit committee the remuneration committee and the nominations committee The audit committee is responsible for overseeing the fin... View the full answer