Capestorm Ltd, a large manufacturing company, wishes to appoint a number of non-executive directors to their Board. In doing so they wish to comply with the recommendations of The King III Report on Corporate Governance. The existing Board is made up as follows : Chairman and Chief Executive Officer : John Cape Financial Director : Roddy Storm Production Director : Zeb Matabane Sales and Marketing Director : Jeff Ryder Operations Director : Clint Westwood Non-executive Director : David Brown* 29 *David Brown represents his uncle Bill Brown who has a 28% shareholding in Capestorm Ltd. Bill Brown has the largest single holding in Capestorm Ltd. The following individuals are being considered for appointment : Moss Mda : prominent local businessman who is active in community projects Carter Brown : a recently retired engineer who had on the odd occasion been consulted by Capestorm Ltd Andy Storm : a chartered accountant and son of Roddy Storm Eric Redfern : a partner in Capestorm Ltds audit firm (not the designated partner) Peter Obden : the companys legal adviser since the companys inception Raksa Vather : a consultant in Capestorm Ltds line of business, who has no business relationship with Capestorm Ltd Titus Sexwale : a businessman and chairman of the local Chamber of Commerce Reg Gumede : the owner of a small business which supplies Capestorm Ltd with a number of components used in their manufacturing process. Reg Gumedes business is one of ten such small businesses which supply Capestorm Ltd as a part of the companys social and business development initiatives. Capestorm Ltd is his major customer Mary Masters : the recently retired senior public relations manager at Capestorm Ltd. This is a senior executive role. John Cape has asked you to advise him on what should be done to get our Board right.

YOU ARE REQUIRED TO: (a) comment on the composition of the existing Board of Capestorm Ltd in terms of the recommendations of the King III Code. (5) (b) advise John Cape on how the board of directors of Capestorm Ltd should be reconstituted to satisfy the recommendations of the King III Code. Your answer should indicate inter alia, which of the individuals being considered, should be appointed. Justify your choice. (20)