Corporate Governance Analysis of Acer Computers

This presentation provides a detailed analysis of various aspects of ACER computers including the role of the board of directors and the executive management in respect of the corporate governance matters of the company, independence of the auditor in conduct of his duty, and the presence of split between the identity of the chairperson and the chief executive officer.

ACER COMPUTERS

INTRODUCTION
In this presentation an effort has been made in respect of
developing a detailed analysis of various aspects of ACER
computers which includes the following:
A) Role of the board of directors and the executive
management in respect of the corporate governance
matters of the company
B) Independence of the auditor in conduct of the his duty
C) Presence of split between the identity of the chairperson
and the chief executive officer .

Role of the board of directors and the executive management in respect of the
corporate governance matters of the company
In this part of the presentation the role played by the board of the
company and the executive management of the company in
respect of the corporate governance of the company are
discussed.
a) The company evaluates whether it has incorporated the
measures in respect of the ethical conduct of the company
within its internal policies and the disclosures in its respect
has been made to the public (Coffee & Palia, 2016).
b) It evaluates whether management has put in place any kind
of measure to control any unethical conduct.
c) Whether measures are present in respect of the acts listed in
the article 7 Ethical Corporate Management Best Practice
Principle for TWSE/ GTSM listed companies.

Role of the board of directors and the executive management in respect of the
corporate governance matters of the company
The results presented by the management shows the following:
a) After the evaluation that the management and the board of directors
have stayed true to its motto that integrity is the highest principle in
Acer. Consequently, they have shown determination in implementing
the company’s guidelines (Agrawal & Cooper, 2017).
b) The company formulates its Standard of Business Conduct in order
to guide its behaviour with its supplier, customers, business partners,
shareholders and all the related community with which the company
is engaged in business.
c) For the purpose of eradicating any misconduct the company has put
in place several policies and guidelines like the Standards of Business
Conduct, Antitrust and Fair Competition guidelines, Regulations on
insider trading and several rules governing the Management of
Personal Data.

Independenceoftheauditorinconductofthehisduty
In order to maintain the independence of the auditor the following
enforcement status have been established by the audit committee.:
a) It has specifically assigned the duty of ensuring the independence of the
auditors to the audit committee and the same has been communicated
to the shareholders via the annual report of the company (Kraakman &
Hansmann, 2017).
b) The Audit committee of the company regularly engages in evaluation of
the independence of the CPAs on the basis of the statements laid down
in the CPAs statement of independence and along with the various
stipulations laid down by the relevant regulations.

Some of the most important evaluation items of the committee include the
following:
a) The capability of the management of respecting the various challenging
and objective audit procedures applied by the auditor
b) It evaluates whether the auditor is rendering any non-audit service to
the company and whether the same is restricting his independence of
his auditing procedures.
c) It continuously evaluates whether the auditing firm itself has enacted
any independence rules for itself, its staff and other persons for ensuring
the independence in accordance with the Norm of Professional Ethics for
CPA.
Independence of the auditor in conduct of
his duty

Presenceofsplitbetweentheidentityofthechairpersonandthechiefexecutiveofficer.
This presentation suggests the implications of absence of split in the identity
of the chairperson and the chief executive officer.
a) Corporate governance:
In case the company has the same person as its chairperson then the liability
of the adhering to the actions required to be performed fells upon the same
person who is responsible for determining the effectiveness and efficiency of
the decisions and the actions taken (McCahery et al., 2016).
b) Independence of the audit committee:
The absence of the distinction in the identity of the chairperson and the
chief executive officer drastically reduces the effectiveness of audit
committee.
c) Compensation in respect of the executive members:
In case the chairperson and the chief executive officer of the company are
the same person decision in respect of his remuneration has to be taken by
the same person.

CONCLUSION
In the report it is found that the company has well enforcement status in place
which helps the management to determine the compliance in respect of them.
Due to the readily available measures of corporate governance the management
is focussed on taking adequate and appropriate steps in this respect. The audit
committee makes sure about the conduct of independent audit by the help of its
own prescribed enforcement status. The company has the same person as the
chief executive officer and the chairperson of the board. This may result in
conflict of interest.

Reference
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