AUE2602
CORPORATE GOVERNANCE
IN ACCOUNTANCY
ASSIGNMENT 02 SOLUTIONS
SEMESTER 1 2022
, QUESTION 1.1.
Evaluate the corporate governance practices of Book Marked according to the
principles and practices of the King IV Code™. You should discuss issues relating to
compliance and non-compliance with the King IV Report in your answer.
a) Governing body
Mr Scott the CEO Is not the Chairman of the board which is in compliance
with King IV.
The board does not comprise a balance of power executive and non-
executive directors; there is only three non-executive directors to 5
executive directors. There should be a majority of non-executive directors
and the majority of the non-executives should be independent.
The board should set a balanced target for race and gender
representation in its membership. There are only 2 females in the board
of 8 members therefore non-compliant to King IV.
The board should be assisted by the nominations committee when
appointing new directors. Ms Grey has announced her retirement from
her position as CFO and has recommended that Mr Rhodes, the financial
manager should take over her position on the board, which the board
accepted. This in not compliant to King IV.
There are no independent non-executive directors: All non-executive
directors are members of audit committee and the likes of Kandasamy
and McCoyy have direct dealings with Book Marked. Therefore, he cannot
be considered as independent.
The chief executive officer and at least one other executive should be
appointed to the board. The board complies as it has both have Mr Scott
the CEO and Ms Grey and others which are executive directors.
CORPORATE GOVERNANCE
IN ACCOUNTANCY
ASSIGNMENT 02 SOLUTIONS
SEMESTER 1 2022
, QUESTION 1.1.
Evaluate the corporate governance practices of Book Marked according to the
principles and practices of the King IV Code™. You should discuss issues relating to
compliance and non-compliance with the King IV Report in your answer.
a) Governing body
Mr Scott the CEO Is not the Chairman of the board which is in compliance
with King IV.
The board does not comprise a balance of power executive and non-
executive directors; there is only three non-executive directors to 5
executive directors. There should be a majority of non-executive directors
and the majority of the non-executives should be independent.
The board should set a balanced target for race and gender
representation in its membership. There are only 2 females in the board
of 8 members therefore non-compliant to King IV.
The board should be assisted by the nominations committee when
appointing new directors. Ms Grey has announced her retirement from
her position as CFO and has recommended that Mr Rhodes, the financial
manager should take over her position on the board, which the board
accepted. This in not compliant to King IV.
There are no independent non-executive directors: All non-executive
directors are members of audit committee and the likes of Kandasamy
and McCoyy have direct dealings with Book Marked. Therefore, he cannot
be considered as independent.
The chief executive officer and at least one other executive should be
appointed to the board. The board complies as it has both have Mr Scott
the CEO and Ms Grey and others which are executive directors.
