- 20 Marks
CSME – May 2024 – L2 – SA – Q3 – Corporate Governance
Examines corporate governance challenges related to ownership and control separation.
Question
ZAAN Pharmaceuticals, a public limited liability company, is currently experiencing a severe crisis between its shareholders and the Board of Directors concerning the management of the company.
Required:
a. Explain how the separation of ownership from the control of a company can create problems.
(2 Marks)
b. Discuss TWO circumstances in which problems may arise with corporate governance.
(2 Marks)
c. What constitutes weak or poor corporate governance?
(2 Marks)
d. Discuss the key issues covered by codes of corporate governance.
(14 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Governance Codes, Governance Issues, Ownership vs. Control, Weak Governance
- Level: Level 2
- Topic: Corporate Governance
- Series: MAY 2024
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