Question 1(25 Marks) Horizon Tech (Pty) Ltd is a medium-sized technology company operating in South Africa. It is not listed but has seen significant growth over the past five years, making it one of the largest privately-owned companies in its sector. Board Composition and Related Details The board of Horizon Tech comprises the following individuals: 1. Richard Mason (CEO, Executive Director, Chairperson of the Board)2 Katherine Hill (CFO, Executive Director)3. Michael Andrews (COO, Executive Director)4. Sarah Jacobs (Non-Executive Director, owns 10\% of the shares in Horizon Tech)5. Ethan Greene (Independent Non-Executive Director, Chairperson of the Audit Committee)6. Linda Khoza (Non-Executive Director, owner of a major supply company to Horizon Tech)7. James Mathis (Non-Executive Director, Chairperson of the Remuneration Committee, consultant who previously worked with Horizon Tech's primary customer)8. Carla Naidoo (Non-Executive Director, Chairperson of the Social and Ethics Committee) Key Facts Chairperson of the Board: Richard Mason, the CEO, also holds the role of Chairperson of the Board. He is involved in the company's day-to-day operations. - Audit Committee Composition: The audit committee is composed of Ethan Greene, Linda Khoza, and Richard Mason. - Qualifications: None of the board members have formal qualifications in governance or finance, except for Ethan Greene, who has experience in the financial services sector. Succession Planning: The board has not developed a formal succession plan for key leadership positions, including the Chairperson and the CEO. Richard Mason has been in the role of Chairperson for the past 12 years. Recent Developments The board recently approved a proposal to acquire a new software company. During the approval process, Linda Khoza's supply company was chosen as a primary vendor for the software integration, but no conflict of interest was declared. Richard Mason, acting as both Chairperson and CEO, heavily influenced this decision. The audit committee has met twice in the last year but has not provided detailed reports on its assessments. Ethan Greene, the Chairperson of the audit committee, has raised concerns over the lack of financial reporting structures but was overruled by Richard Mason. You are required to: Based on the scenario above, evaluate the compliance of Horizon Tech (Pty) Ltd with the King IV Code of Corporate Governance. Identify and discuss both areas of contravention and compliance with the code.