iii) Indicators of effective Internal Controls (Corporate Governance) include: Board effectiveness (proportion of independent directors; # of meetings in a year). Higher proportion of independent directors is an indicator of an effective corporate governance. A higher number of board meetings is also an indicator of effective corporate governance. CEO duality = Is the CEO/President also the Chair of the Board? CEO duality (that is, CEO serving as the Board Chair) is an indicator of weak corporate governance. Audit committee effectiveness (accounting and financial reporting expertise of the members; are they all independent? How many times did the committee meet in the year? The Company emphasizes adhering to Code of business conduct and ethics The Company emphasizes the importance of Whistleblower mechanisms The Company demonstrates a commitment to hiring competent employees (iv) To evaluate the effectiveness of Linamar and Magna's corporate governance, review the following information in the Proxy statement (Management Information Circular) of each company: About the Directors (director bios), Corporate Governance Practices, The Role of the Executive Chairman, Independent directors, Mandate of the Board, Director Qualifications and Continuing Education including director attendance, Ethical Business Conduct, Board Committees, Mandate of the Audit Committee.

Recommendation & Conclusion Based on your analysis, which of the two companies would you recommend as an investment to a prospective investor? You must provide justification for your recommendation based on your analysis of the 2 companies and any other relevant publicly available information.