AUE2602 - Corporate Governance In Accountancy (AUE2602)
Exam (elaborations)
AUE2602 ASSIGNMENT 2 SEMESTER 2 OF 2022
10 views 0 purchase
Course
AUE2602 - Corporate Governance In Accountancy (AUE2602)
Institution
University Of South Africa
AUE2602 ASSIGNMENT 2 SEMESTER 2 OF 2022. Evaluate the corporate governance practices of Book Marked according to the principles and
practices of the King IV Code. You should discuss issues relating to compliance and noncompliance with the King IV Report in your answer.
a) Governing body
• Mr S...
AUE2602 - Corporate Governance In Accountancy (AUE2602)
All documents for this subject (85)
Seller
Follow
SOLUTIONS2024
Reviews received
Content preview
AUE2602 ASSIGNMENT
2 SEMESTER 2 OF 2022
, Stuvia.com - The study-notes marketplace
AUE2602 ASSIGNMENT 2 SEMESTER 1 OF 2022
QUESTION 1.1.
Evaluate the corporate governance practices of Book Marked according to the principles and
practices of the King IV Code. You should discuss issues relating to compliance and non-
compliance with the King IV Report in your answer.
a) Governing body
• Mr Scott the CEO Is not the Chairman of the board which is in compliance with
King IV.
• The board does not comprise a balance of power executive and nonexecutive
directors; there is only three non-executive directors to 5 executive directors.
There should be a majority of non-executive directors and the majority of the
non-executives should be independent.
• The board should set a balanced target for race and gender representation in
its membership. There are only 2 females in the board of 8 members therefore
non-compliant to King IV.
• The chief executive officer and at least one other executive should be
appointed to the board. The board complies as it has both have Mr Scott the
CEO and Ms Grey and others which are executive directors.
• The board should be assisted by the nominations committee when
appointing new directors. Ms Grey has announced her retirement from
her position as CFO and has recommended that Mr Rhodes, the financial
manager should take over her position on the board, which the board
accepted. This in not compliant to King IV
• There are no independent non-executive directors: All non-executive
directors are members of audit committee and the likes of Kandasamy and
McCoyy have direct dealings with Book Marked. Therefore, he cannot be
considered as independent.
b) Chairperson of the Board
• The King IV Report recommends that the chairperson should be an independent
non executive director. Mr Adofo owns 7% of the equity interest in Book Marked
yet he is the chief executive officer (CEO).
• The chief executive officer should not be the chairperson. Mr Adofo is the
chairperson of the board and he is not the CEO of the board therefore complies
with King IV
FOR ACCADEMIC NEEDS CONTACT INFO@UNITUTORIALS.CO.ZA/0651609781
Downloaded by: DistinctionsGuaranteed | kaydot524@gmail.com
Distribution of this document is illegal
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller SOLUTIONS2024. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.00. You're not tied to anything after your purchase.