- 20 Marks
CSEG – May 2017 – L2 – Q2 – Corporate Governance framework
Analyze the corporate governance practices in Aster Ltd, focusing on board composition, roles, and challenges faced by the company.
Question
Aster Ltd is a manufacturing company listed on the Ghana Stock Exchange (GSE). The company has seven directors on its board, with four being non-executive directors, including the chairman, who is a non-executive director. The company has faced some challenges over the past two years, including issues related to governance, transparency, and accountability.
The company’s board meets regularly to discuss the company’s performance and to make strategic decisions. However, there have been complaints from some shareholders about the lack of transparency in the board’s decisions and the dominance of the executive directors in board meetings.
Required:
a) Explain FOUR ways in which the board of Aster Ltd can improve its corporate governance practices. (8 marks)
b) Discuss THREE challenges that Aster Ltd may face in implementing good corporate governance practices. (6 marks)
c) Identify and explain TWO roles of non-executive directors in promoting good corporate governance in Aster Ltd. (6 marks)
Find Related Questions by Tags, levels, etc.