Based in Mauritius and employing around 80 employees, ABG Ltd. is involved in the import, sale, repairs and maintenance of passenger vehicles. The shares of the company are held by twenty persons and it is managed by a Board of Directors comprising of six members. The Chairperson of the Board is also the Chief Executive Officer (CEO). Other Board members include the Financial Manager (being part of executive management) and four Non-Executive Directors who had been appointed by the Chairperson/CEO on the basis of past relationships. The Chairperson/ CEO sets the Board agenda, distributes Board papers in advance of meetings and briefs Board members in relation to each agenda item. At each meeting of the Board, the financial performance of ABG Ltd. is reviewed in detail and the Financial Manager is expected to provide additional information as and when required. Other issues that regularly appear as agenda items include new legislation (laws). The Board seldom discusses about operational matters relating to ABG Ltd. as the CEO believes that they are outside the directors’ experience and that they should be left to the executive management team. The Board has no separate audit committee but relies on the annual management letter from the external auditors to provide assurance that financial controls are operating effectively. The external auditors were appointed by the CEO some fifteen years back after having consulted the Financial Manager Discuss the 6 corporate governance issues at ABG Ltd and what could be done to improve corporate governance at ABG Ltd.
Based in Mauritius and employing around 80 employees, ABG Ltd. is involved in the import, sale, repairs and maintenance of passenger vehicles. The shares of the company are held by twenty persons and it is managed by a Board of Directors comprising of six members. The Chairperson of the Board is also the Chief Executive Officer (CEO). Other Board members include the
The Chairperson/ CEO sets the Board agenda, distributes Board papers in advance of meetings and briefs Board members in relation to each agenda item. At each meeting of the Board, the financial performance of ABG Ltd. is reviewed in detail and the Financial Manager is expected to provide additional information as and when required. Other issues that regularly appear as agenda items include new legislation (laws). The Board seldom discusses about operational matters relating to ABG Ltd. as the CEO believes that they are outside the directors’ experience and that they should be left to the executive management team.
The Board has no separate audit committee but relies on the annual management letter from the external auditors to provide assurance that financial controls are operating effectively. The external auditors were appointed by the CEO some fifteen years back after having consulted the Financial Manager
Discuss the 6 corporate governance issues at ABG Ltd and what could be done to improve corporate governance at ABG Ltd.
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