Stairods Pty Ltd has expanded rapidly over recent years and is now looking to float on the ASX. It is currently undertaking a review of its corporate governance practices and has asked for your assistance in reviewing the composition of the board.

The board of directors consists of six executive directors as follows:

• Rodney Stair Chairman and Managing Director

• Brendan Carpet Finance

• Stanley Stair Operations

• Arthur Cranmer Sales

• Gemima Strange Purchasing

• Barbara Stair-Carpet Personnel Barbara is married to Rodney, is sister to Brendan and mother to Stanley. Brendan is the only director with financial expertise, he is responsible for internal controls and has attempted to introduce both a tightening of internal controls and an internal auditor. These attempts have been unsuccessful as the rapid growth in the business has meant that the board discuss a range of operational issues in their monthly board meetings and the internal control proposals have not been discussed.

Required

Discuss the changes that Stairods Pty Ltd should consider to improve its corporate governance practices.