Question 1
Marking Guide
1 Up to 1 mark per well described weakness and up to 1 mark per recommendation. Overall maximum of 5 marks
for weaknesses and 5 marks for recommendations.
– Four of ten directors are non-executive directors (NEDs), should be at least half
– Chairman and one of the NEDs are not independent
– Chairman sits on the audit committee as the chair
– None of the NEDs have recent, relevant financial experience
– No director subject to re-election for the last four years
– Only chairman involved in dialogue with shareholders
– No internal audit function established
–––
10