Corporate Governance in Australia

Surname 1
Student’s name
Professor’s name
Subject
Date

Surname 2
Relevant facts and key problems
Following the case presented, the important facts include; violet ltd being a public listed entity or
company that wants to raise its capital. The company trades under the name, Indigol. According
to the plan, the need to open 10 more branches forms the rationale of need to raise additional
capital. In addition, the board has adopted a market strategy of coming up with limited
proprietary company.
Analysis of two to five key problems
Following the facts of the case, issues that exist in the company include: Mr. Peter acts as a
chairman and as a Chief Executive Officer (CEO). This is a problem as it contributes to the issue
of conflict of interest between balancing the duty of a chairperson vis a vis that of a CEO. In
addition, there is a gender issue regarding the board’s composition, as it comprises a majority of
male unlike females. This does not take into account the equality requirement as provided for by
international laws. Further, the fact that Peter is playing two roles; it has raised the issue as to
how the company is being run and managed (A.O., 2012).
On the other hand, communication between the board and management has become of concern.
The concern is that, they are not able to agree on how to properly manage the company. In
addition, the issue regarding the appointment of directors is of concern to the company. Further,
there is the issue of Peter using his position as an independent director for his own benefit. This
has called for investigation by the regulator. The investigation will look into the issue of making
profit from a company that has been established for non- profit purposes (Baxter, 2014).