QUESTION $5(20$ Marks$)$

$5\mathrm{.}1$ Afrimat Limited has been reviewing its board structures and functions. The board has a mix of executive

and non$-$executive directors. However, the CEO$$s family members are heavily represented, and there is one

non$-$executive director. Audit matters are dealt with by the full board, and the process for nominating and

appointing new board members seems non$-$transparent.

$(10$ Marks$)$

REQUIRED

Evaluate the arrangements and functioning of the Board of Directors in accordance with the King IV code of

corporate governance and suggest improvements that can be made.

$5\mathrm{.}2$ Discuss the effects on a company if it chooses to enter a finance lease rather than an operating lease. $(10$ Marks$)$