Corporate Governance & Compliance
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Added on 2020-11-23
Corporate Governance & Compliance
Added on 2020-11-23
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Brief to Board Chair
TABLE OF CONTENTSTable of Contents.............................................................................................................................2INTRODUCTION...........................................................................................................................1a) Role of board of MoneyMaker and its restructuring to better deliver value to shareholder1b) Reasons for and against developing an institutional investor engagement program.........6c) Required changes to the board performance assessment process at MoneyMaker............7CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONCorporate governance is an effective system consisting of rules, practices and processthrough which a firm is being directed and controlled accordingly. It basically consists ofbalancing the social and economic interest of MoneyMaker Pvt Ltd. The primary aim of thisproject report is to appease the institutional investors by undertaking a review of company’sgovernance compliance. This module consists of specific information about role of board indetermining the strategy and factors associated with them. Role of establishing the culture of anorganisation will also be discussed in this report. Apart from this, specific reason will beprovided for the development of an institutional investors engagement program. Along with this,certain steps required to be taken into account for making changes are mentioned under thisreport. Worthy corporate governance helps investor confidence which is vital for capability ofentities listed on ASX to compete for capital. (Corporate governance, 2013).a) Role of board of MoneyMaker and its restructuring to better deliver value to shareholder1): The role of the board in determining strategy and what factors can influence that roleAs per the mentioned case, it is determined that board are being urged to play an activerole in any kind of strategic formulation. A well organised argument can be made in accordanceto board of MoneyMaker Pvt Ltd as it feels obliged to retain external experts to review corporatestrategies. There are various roles and responsibility that would be first undertaken at the time oftheir appointment. The board of directors is appointed to act on behalf of MoneyMaker.Corporate governance mechanisms such as board of directors that plays an eminent role in goodpractices of implementing policies of stakeholder engagement that consists of effective processto attain holistic transparency (Frias‐Aceituno, Rodriguez‐Ariza and Garcia‐Sanchez, 2013).Role of board of director: Determine the company’s overall vision and mission to guide and set pace for theircurrent operations and future development. Create strategic options; select those to pursue and decide the means to implement andsupport their shareholder.Factors that have impact on the role: Board size: It has been seen that MoneyMaker has doubled the size after acquiring thefinancial planning business. It makes huge impacts on the overall management of theoperations.1
Proportion of outside directors: The role of board members gets affected in case thecomposition of team gets expand. MoneyMaker board takes pride on their corporategovernance as well. Company suggest a dichotomous trade off focus underestimatesexternal director’s impacts on the overall growth of the company performance (Kim,Mauldin and Patro, 2014). Role of non-executive directors: They have to follow certain role which are mentioned below: To have control on executive directors so that the presence of non-executive directorscaneasily assist to ensure an individual persons or group to join the company.To contribute that non-executive directors would achieve overall leadership anddevelopment of MoneyMaker. Affecting Factor They need sufficient time to schedule their roles or duties in proper manner while it is notseen in case of MoneyMaker. The cultural effect can also mediate their effectiveness in performing their role within anorganisation.Role of chairman: There are certain roles in an organisation which acts as a facilitator and guidefor managing the board meeting. It consists of:Evaluating board composition and organisation.Clarifying board and overall management responsibilities.Planning and evaluating board and committee meetings. Factors:After expansion of business, their role gets increase in respect to their shareholder toprovide value to them.Certain factors which are related with earlier compliance must be varied accordingly asper the decisions made by MoneyMaker. 2): Role played by board in culture development in an organisationAs per the mentioned case, it has been seen that culture within the company is excellentwhich is clearly being highlighted through the lack of complaints being presented to the board asevidence. While going through case deeply, it has been determined that inappropriate culture isbeing prevailed in MoneyMaker because after acquiring the financial business, company was not2
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