Question 3 (10 marks)

You are the Human Resources Director of a listed company in Hong Kong. The Chairman of the Board of Directors asks you to implement one of the principles under Appendix 14 of the Main Board Listing Rules. The Principle in section A4 states that there should be plans in place for orderly succession for appointments (the A4 Principles.) The Chairman does not know why the company should have such plans.

Required:

Explain to the Chairman the benefits of succession planning and outline the steps or processes the company could take to implement the A4 Principle.