Governance Concerns at CapeTown Essentials $($Pty$)$ Ltd

Recently, stakeholders have raised concerns about the governance practices at CapeTown Essentials. The company's

board of directors consists primarily of family members, with no independent non$-$executive directors. Board meetings are

infrequent, often only convened when there's a crisis. There's a lack of transparency in the company's operations, with

stakeholders not receiving comprehensive reports on financial performance, risks, or strategies. Additionally, there's no

formal stakeholder engagement process in place, leading to a growing disconnect between the company and its

investors, employees, and customers. The company also lacks a clear policy on technology and information governance,

leaving it vulnerable to potential cyber threats.QUESTION $2(15$ Marks$)$

CapeTown Essentials $($Pty$)$ Ltd$.$ has recently come under scrutiny for its governance practices. As an

external consultant, you have been tasked with evaluating the company's governance structures and

practices in light of the KING IV report on corporate governance for South Africa.

Based on the provided information:

a$)$ Identify specific governance concerns at CapeTown Essentials $($Pty$)$ Ltd$.(5$ Marks$)$

b$)$ For each identified concern, link it to the relevant principle from the KING IV report and explain what the

principle requires.

$(5$ Marks$)$

c$)$ For each identified concern, provide ONE $(1)$ recommendation on practices that could be implemented to

achieve compliance with the KING IV report.

$(5$ Marks$)$