Chapter 3 - Corporate Governance

Question 1

Can the chair of the board and a chief executive role be held by the person ?

Answer 1

NO. A person cannot fulfill the role of both the chair and a chief executive role within the company.

Question 2

What are the 5 elements of the UK Corporate Governance Code?

Answer 2

Board leadership and company purpose
Division of resposnibitlies
Composition, succession and evaluation
Remuneration
Audit, risk and internal control

Question 3

What are the benefits of having an Audit Committee

Answer 3

Improved credibility of the FS

Increased public confidence in the audit opinion

Stronger control environment as the AC help to create a culture of compliance and control

The internal audit function will report to the AC

It will be less of a burden to meet listing requirements if an audit committee is already established