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ACC03043 - Agency Theory of Corporate Governance | Assignment

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University of Exeter

   

Corporate Governance (ACC03043)

   

Added on  2020-03-04

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ACC03043 - Corporate Governance assignment the prudent corporate governance policies tend to ensure that the agency costs are minimized by ensuring that the interests of the stakeholders are safeguarded. The corporate governance policies of the company ensure the same. Myer Corporate Governance The composition of the board is significant in this regard since the board of directors is headed by an independent and non-executive director. Further, barring and CEO and MD, all the other members of the board are non-executive.

 

ACC03043 - Agency Theory of Corporate Governance | Assignment

   

University of Exeter

   

Corporate Governance (ACC03043)

   Added on 2020-03-04

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Corporate GovernanceBAL & MYRSTUDENT ID:[Pick the date]
ACC03043 - Agency Theory of Corporate Governance | Assignment_1
Corporate GovernanceQuestion 1BAL Corporate Governance In accordance with the agency theory of corporate governance, the prudent corporategovernance policies tend to ensure that the agency costs are minimised by ensuring that theinterests of the stakeholders are safeguarded (Shailer, 2004). The corporate governancepolicies of the company ensure the same. This is ensured by the composition of the boardwhich consists of only one executive director and five non-executive directors. Since themajority of the directors are non-executive and independent, hence the interest of theminority shareholders could be expected to be safeguarded. Further, there are boardcommittees concerned with audit, remuneration and risk management headed by independentdirectors which ensures that internal processes are ethical. Also, there is a continuousdisclosure policy which ensures that management provides a reasonable estimate of businessin the future and also material information is released in public domain at the earliest. Allthese ensure that the shareholders are well informed (BAL, 2017).Myer Corporate Governance Sound corporate governance practices ensure that there is minimization of agency costswhich are especially significant in case of small investors who have limited resources (Farrar,2005). The composition of board is significant in this regard since the board of directors isheaded by an independent and non-executive director. Further, barring and CEO and MD, allthe other members of the board are non-executive. In order to ensure corporate disclosureintegrity, the AFR committee is put in place. Besides, there are declarations by the CEO andCFO which are critical in this regards. Besides, the company also has a constant disclosurepolicy and there is a committee to this effect which ensures that key information isdisseminated to the shareholders. Additionally, the company takes measures such as investorrelations program, investor centre coupled with meetings with shareholders on a constantbasis which allow information deficit to be minimal (Myer, 2016).Question 2BAL Corporate Governance
ACC03043 - Agency Theory of Corporate Governance | Assignment_2

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