Sandy PLC is one of the market leaders in the financial sector. The company has seen enormous growth over the last 4 years. It has recorded enormous profits and brags of a loyal, dedicated and highly trained workforce. Busiku, the CEO of Sandy PLC has a dedicated team of executives and she has found ways of motivating them to achieve high results through incentives. During the year ended 2020, she offered all the directors with performance related bonus if they reach the set targets and the bonuses where eventually paid at the end of the year for meeting the targets. The non-executive directors (NEDs) were very happy and promised to work extra hard the following year to ensure that management achieved even better results at all cost. The company secretary was however not happy with the way the bonus was administered and therefore, he rescued himself from receiving the bonus. Busiku was not pleased with the move and therefore dismissed the company secretary from her role. The Board appointed a well-qualified and seasoned lawyer, Mutinta, to the position of company secretary. Busiku then offered Mutinta a good package that attracted her to accept the job offer. Internal Audit raised some concerns in their audit report concerning the dismissal of the then Company Secretary and the reward package given to the new Company Secretary. The CEO took time to explain the issues raised to the Director Internal Audit who reluctantly amended the report that Busiku then forwarded to the Audit Committee for consideration. During the year, two NEDs joined the oganisation - Dee a seasoned engineer and Chabota a seasoned accountant. The two underwent a detailed induction programme before joining the board and respective board committees. Dee and Chabota were given extra roles to sit on the Legal and Audit Committees respectively. The remuneration committee determined their packages that the two were okay with.

Busiku with the help of the independent auditors prepared the annual reports applying consistently the accounting standards - IFRS, IAS and GAAP. The Audit Committee reviewed the accounts and adopted the financial reports after deliberations. The committee also reviewed the external audit report and forwarded the final reports to the AGM. The shareholders, however, did not know whether the company was being run well and whether the corporate governance arrangements at Sandy PLC were adequate. Required: a) Assess the Corporate Governance arrangements at Sandy PLC (14 marks) b) Briefly explain the benefits of the separation of power and the roles of chief executive officer (6 marks) c) ExplainthebenefitsofaninductionprogrammetoNEDs. (5marks)