Question
I need answer to the following question Better Things plc has been trading for 15 years and has recently become a listed company. It provides
I need answer to the following question
Better Things plc has been trading for 15 years and has recently become a listed company. It provides specialist training in accounting and finance. The listing rules of the London Stock Exchange require compliance with corporate governance principles, and the directors are fairly confident that they are following best practice in relation to this. However, they have recently received an email from a significant shareholder, who is concerned that Better Things plc does not comply with corporate governance principles.
Better Things plc's board comprises eight directors; five executives who originally set up the company and three non-executive directors who joined Better Things plc prior to the listing. Each director has a specific area of responsibility and only the finance director reviews the financial statements and budgets, and makes decisions on directors' remuneration. The chief executive officer, Delia Smith, is considering setting up the audit committee but she is busy. As the board is relatively small, and to save costs, Delia Smith has recently taken on the role of chairman of the board. A new sales director was appointed a year ago and has been so busy that he hasn't had time to undergo any board training. There are a large number of shareholders and therefore the directors believe that it is impractical and too costly to hold an annual general meeting so the annual report and voting resolutions have been sent to shareholders by email.
Required
Describe FOUR corporate governance weaknesses faced by Better Things plc and provide recommendations to address each weakness, to ensure compliance with corporate governance principles.
Evaluate the importance of ethical behaviour for the auditor of a public listed company.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started