RSK4802
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, UNIVERSITY EXAMINATIONS
JAN /FEB 2023
RSK4802
GOVERNANCE, RISK AND COMPLIANCE MANAGEMENT
100 Marks
Duration: 3 Hours
The paper consists of 19 pages, including this page.
This examination consists of Three (4) questions.
Answer ALL questions on the examination script in the space provided.
[TURN OVER]
, 2
RSK4802 JAN/FEB 2023
QUESTION 1
You act as a consultant on corporate governance matters and have recently received the
following enquiries:
Enquiry 1 The four executive directors of a mining company have to visit new prospects in
Africa. Due to logistical problems, they will have to travel together on certain routes. In view of
fierce competition in the market, this strategic trip will not be publicized.
Enquiry 2 Mr. Lincoln acts as the executive chairperson of his company and sits on the
remuneration committee. Mr. Lincoln is a major shareholder in the company. His son acts as
the Chief Executive Officer of the company, which is listed on the JSE Securities Exchange
SA. The enquiry was received from a minority shareholder.
Enquiry 3 The Company has awarded shares and options on shares to its non-executive
directors. The option prices are well below market prices.
Enquiry 4 Mr. Clinton is a non-executive director of a company and attends the monthly
management tender committee meetings. A newspaper reported that Mr. Clinton did not
recuse himself from a meeting which awarded a major contract to his niece.
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