AUE2602
Assignment 2
Gerard van Beek: AUE2602: Assignment 2
2
CORPORATE GOVERNANCE IN ACCOUTANCY: Assignment 2
Question 1:
a) Board of directors: Composition and appointments
The governing body should comprise a majority of non-executive directors, most of
whom should be independent (...
, Gerard van Beek: 60233346 AUE2602: Assignment 2 824944
CORPORATE GOVERNANCE IN ACCOUTANCY: Assignment 2
Question 1:
a) Board of directors: Composition and appointments
The governing body should comprise a majority of non-executive directors, most of
whom should be independent (principle 7 point 8). At present the board of directors
consist mainly of executive directors with only one independent non-executive
director.
The governing body should set targets for race and gender representation in its
membership (principle 7 point 11). The board has not met this requirement as it
consists mainly of male members and only one female member.
The governing body should establish a succession plan for its membership which
should include the identification, mentorship and development of future candidates
(principle 7 point 13). At present, there is no clear indication that the board has met
this requirement.
The governing body should promote diversity in its membership across a variety of
attributes relevant for promoting better decision making and effective governance,
including field of knowledge, skills and experience as well as age, culture, race and
gender (principle 7 point 13). The board are not meeting this requirement as
knowledge, skills and experience between the members are limited.
The CEO of the organisation should not also chair the governing body (principle 7
point 34). Mr George Mathlala cannot serve as the chairperson as well as the chief
executive officer (CEO).
b) Audit committee
The chairperson of the audit committee should be an independent non-executive
director (principle 8 point 57). Mr George Mathlala is not an independent non-
executive director.
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