Answer any TWO questions out of three
Question 1
- Discuss the role of the Chairman and the Chief Executive Officer (CEO) on the board of a public listed company. (8 marks)
- Assess the benefits of the separation of the roles of the CEO and Chairman.
- Other than the Cadbury Report, briefly discuss three other important UK regulations that address corporate governance. (12 marks)
- Discuss the role of the non-executive director and why they should be independent. How might the independence of non-executive directors be defined? (20 marks)
(10 marks)
(Total: 50 Marks)
Question 2
- Critically discuss the principles-based and rules-based approaches to corporate governance. (20 marks)
- Why has institutional investors’ influence grown so much in recent years, and discuss what role do you think institutional investors should play in corporate governance? (10 marks)
- Critically discuss the unitary board system and a dual board system. (20 marks)
(Total: 50 Marks)
Question 3
- Discuss the different types of corporate risk that arise at different levels of an organisation, illustrating with an example of each risk level. When managing a firm’s risks what policy options does the board have? (15 marks)
- Explain at least four different roles of a remuneration committee and how the cross directorship undermines their role. (15 marks)
- Discuss the role of institutional investors in corporate governance in the light of the UK stewardship code (2010) and explain how they can undertake their responsibilities? (20 marks)
(Total: 50 Marks)
(Total: 100 Marks)
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