CASE STUDY

Disney Holdings Ltd is a publicly listed company with its board composition as follows:

The board of directors consist of 7 members.

The board chair holds 30% shareholding in the company who is also one of the non-executive directors.

There are 4 members as executive directors; 2 of which are the company's CEO and CFO itself.

It also has one sub-committee, known as "audit committee". This committee has 3 members, which includes: the chair, an independent director and the CFO. They are competent enough to provide specific information about the company.

Required:

Review the structure of the board above and discuss potential areas that can lead to Disney's governance failure.