Metro Plastics Limited is a medium-sized manufacturer of rigid plastics. It produces casings for printers, telephones, computer screens, and other types of equipment. It also produces stand-alone plastics, such as baskets and jars. Recently, Metro Plastics was purchased by a large food manufacturing conglomerate. The previous owner of Metro Plastics has agreed to stay on for three years to help provide management transition. He has also been asked to provide a presentation to the board of the conglomerate about the corporate governance and risk management practices of his company. The owner of Metro Plastics has come to you to provide some guidance about the type of information that he should provide to the board.
REQUIRED
a. What type of information should he provide to the board about corporate governance? List three corporate governance controls that might have been present at the owner-managed company.
b. What type of information should he provide about risk management practices at Metro Plastics? List three risk management practices that might have been present at the owner-managed company.