- 10 Marks
SCS – Dec 2022 – L3 – Q3 – Strategy, stakeholders, and mission
Explanation of potential agency conflicts minimised by the involvement of a shareholder in management.
Question
Mr. Asare Blankson, the sole shareholder, has been actively involved in the management of the company by serving as the CEO for many years and currently as the Board Chairman. This could minimise potential agency conflicts associated with the separation of the shareholder(s) from management as suggested by the Agency Theory of Corporate Governance.
Required:
Explain FIVE (5) potential agency conflicts that could be minimised or avoided by Mr. Asare Blankson’s involvement in the management of the company as a former CEO and the current Board Chairman. (10 marks)
Find Related Questions by Tags, levels, etc.
Report an error