AUE2602
ASSIGNMENT 2
SEMESTER 2
2022
FOR ACCADEMIC NEEDS CONTACT /1
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 complianc...
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
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