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.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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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.
Transcribed Image Text: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.
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