Question
Avery and Donna Lee formed Donroe Ltd. (DL) several years ago. To reward DL's loyal and hard-working employees for their contribution to DL's growth, Avery
Avery and Donna Lee formed Donroe Ltd. (DL) several years ago. To reward DL's loyal and hard-working employees for their contribution to DL's growth, Avery and Donna implemented an employee share purchase program. The shares were issued a month ago, and as a result of the newly issued shares, DL is now owned by Avery, Donna, their adult children (Steve, Lynn, and Chris), and various employees. Several employees have now come to Avery and Donna asking to be appointed as members of DL's board of directors. The current board of directors consists of Avery, Donna, Steve, Lynn, and Chris. Steve, a lawyer, handles public relations; Lynn, a CPA, handles all audit and finance matters; and Chris, a human resources (HR) professional, handles all compensation and HR matters. Avery and Donna feel that given their children's professional backgrounds and knowledge of DL, the board of directors is complete. Avery and Donna are unsure how to respond to the employees' requests to join the board of directors. Required: a) Explain the primary role of the board of directors and why the employees of DL would like to have representation on DL's board of directors. (2 marks) b) Recommend two changes to the current board of directors at DL, and provide support for your recommendations. (2 marks)
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