a&a

Question 1

what is corporate governance
the sy—– by w—- co—— are d——- and co——-

Answer 1

the system by which companies are directed and controlled. the directors are the ones that make these

Question 2

who is responsible for good corporate governance
d

Answer 2

directors

Question 3

what is the purpose of good corporare governance
fa——– ef—— ent————- and pr—–
ma——– that can deliver lo– te– su—– of the company

Answer 3

to facilitate effective entrepreneurial and prudent management that can deliver long term success of the company

Question 4

why is good corporate governance important
ma——— ru- sh———- ow-
an—- me—–
ne— ar- me- and ke– in——

Answer 4

1)management run the business but the shareholder own it
2)shareholders only usually have an annual general meeting to raise concerns
3)shareholders need a process in place to ensure needs are met and kept informed

Question 5

6 principles relevant to the accountant
1) cl— ba— for an e——– c.g fr——-
2)Sh——— ri—- up—-
3)sh——- are tr—– eq——-
4)ri— of st——– re——-
5)ti—- & ac—— di———
6)du—- of the bo—-

Answer 5

1)clear basis for an effective corporate governance framework
2)shareholders rights upheld
3)shareholders treated equitably
4)right of stakeholders recognised
5)timely and accurate disclosures
6)duties of the board

Question 6

who ensures shareholder rights are upheld

Answer 6

directors/management

Question 7

what should be disclosed by the company
fi——- si——–
pe———
ow——-
go——– sh—- all be di——-

Answer 7

financial situation

performance

ownership

governance should all be disclosed

Question 8

examples of corporate strategy
r— p—–
bu—— pl—
me—– and ac———-
se—– pe——– ob——–

Answer 8

1) risk policy
2) business plans
3) capital investment
4) mergers and acquisitions
5) setting performance objectives

Question 9

what do the board have a responsibility to do
ev—— and mo—– ef———– of c.g.p

ap——— of k– ex———

ex——— and bo— re———–

mo—– and ma—- the a.p

Answer 9

1)evaluate and monitor effectiveness of corporate governance policy
2)appointment of key executives
3)align exec and board remunerations
4)monitor and manage the agency problem
5)taking responsibility for accounting and financial reporting system with an appropriate system of control to manage the risk
6)ensure appropriate disclosures and communications
7)review and guide corporate strategy