- 20 Marks
CSME – May 2022 – L2 – SB – Q4 – Corporate Governance
Analyze governance roles in public companies, focusing on the CEO, Chairman, and non-executive directors.
Question
Chief Etido has recently increased his shareholdings in Food Plc, a leading manufacturer of some fast-moving consumer goods (FMCG) in the country, to over 51%. As his close friend, he recently approached you for advice on how to actualize his ambition of becoming both Chief Executive Officer and Chairman of Food Plc as he is in several other private limited liability companies.
Required:
a. Advise Chief Etido on the possibility of becoming both the CEO and Chairman of a public limited liability company like Food Plc, as provided for by the Code of Corporate Governance. (2 Marks)
b. The roles of the following in a public limited liability company:
- i. The CEO (5 Marks)
- ii. The Chairman (5 Marks)
c. His responsibilities on the board of directors, if he chooses to become a non-executive member instead. (8 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Board of Directors, CEO, Chairman, Corporate Governance, Non-Executive Directors
- Level: Level 2
- Topic: Corporate Governance
- Series: MAY 2022