Dalek plc is a mining company based in country H. It has recently seen its share price fall after several scandals, including fraud in its accounting department and public protests against damage caused by the company to legally protected woodlands in country H. Sarah Jane, who is CEO and Chairman of Dalek, has resisted calls for improved corporate governance, stating that 'Country H only has a principles-based system of corporate governance, which is pointless as it means company directors can just do whatever they like. I also won't accept non-executive directors on my board. All they do is get paid - they have no influence over the decisions made by the board.' Question: In the context of Dalek plc, critically discuss the statements made by Sarah Jane and explain the potential benefits to Dalek of improving its corporate governance.
Dalek plc is a mining company based in country H. It has recently seen its share price fall after several scandals, including fraud in its accounting department and public protests against damage caused by the company to legally protected woodlands in country H. Sarah Jane, who is CEO and Chairman of Dalek, has resisted calls for improved corporate governance, stating that 'Country H only has a principles-based system of corporate governance, which is pointless as it means company directors can just do whatever they like. I also won't accept non-executive directors on my board. All they do is get paid - they have no influence over the decisions made by the board.' Question: In the context of Dalek plc, critically discuss the statements made by Sarah Jane and explain the potential benefits to Dalek of improving its corporate governance.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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