Question 4 (20 marks) At the beginning of 2020, you were employed as the Financial Manager at Festival Line Limited ("Festival"). You recently completed a specialised course in Ethics and Corporate Governance. Therefore, the CEO asked you to assist with all Corporate Governance matters relating to King IV and make recommendations where needed. The following information was provided to you regarding the composition of the board of directors and its various committees: 7 HBACC230-1-Jul-Dec2022-SA1-CW-V1-03012022 \begin{tabular}{|l|l|} \hline Mr. Carter Jonker & Operations director. Member of the nominations and remuneration committee. \\ \hline \end{tabular} Additional information: - Festival's management approves their risk policy, which includes a review of the company's risk appetite on an annual basis. The risk committee assists management in the management of remuneration. Festival's risk and remuneration policies assist management in overseeing the integration between risk management and the business activities and the company's culture. - The accountant compiles the annual financial statements of Festival according to the IFRS for SME's financial reporting framework. The financial manager approves the financial statements annually, and the integrated report is compiled every second year. These reports are kept at Festival's head office in Cape Town so that any stakeholder may obtain access to view them. It is not made available or disclosed at any other location. - The nomination for re-appointment of directors is an automatic process conducted annually during the general meeting. - The performance review of the board of directors occurs annually and is as follows: Ms. October's performance was assessed at one of the director's meetings. The evaluation was performed by Ms. Botha, whom the directors appointed for this task. Mr. Adams handled Mr. Smith's performance assessment. The financial director conducted the remaining board of directors' performance evaluation. - It was noted that Ms. Cloete only attended two board meetings for the year. - Festival does not have a company secretary, and this position has been vacant for a few years already. Ms. October asked you to follow up with the HR manager regarding why it is being delayed and inquire whether or not the remuneration committee has finalised and approved the remuneration for this position. Required: Identify and discuss any contraventions in relation to King IV on Corporate Governance that are evident from the information provided. Limit your answer to aspects on which information is provided in the scenario. Clearly state the applicable section of King IV where after you apply King IV to the given scenario