Question 1

Board structure Two- tier Board

Accepted Answer

France Germany Japan

Question 2

Board structure Unitary Board

Accepted Answer

UK USA

Question 3

Board structure Supervisory Board

Accepted Answer

Non-Exec Directors

Question 4

Board structure Board of Directors

Accepted Answer

Non-Exec Director - Executive Director

Question 5

Board structure Management Board

Accepted Answer

Executive Directors

Question 6

Board - Roles and Responsibilities

Accepted Answer

``` Audit Committee Risk Committee Nominations Committee Remunerations Committee Chairman Chief Executive Officer (CEO) ```

Question 7

Board - Roles and Responsibilities Audit Committee

Accepted Answer

The audit committee meets separately to the mainboard and consists entirely of non-executive directors (3 or more) of whom at least one must have appropriate and up-to-date financial experience.

Their role is to monitor the integrity of the financial statements, review internal controls and audit effectiveness, monitor the appointment of and removal of external auditors, ensuring independence, and provide forum that facilitates confidential whistleblowing.

The key to the their role is to ‘oversight’, ‘review’, and ‘assessment’.

Question 8

Board - Roles and Responsibilities Risk Committee

Accepted Answer

This committee consists of largely non-executive directors that assessed the company’s risk exposure and risk management strategy.

This committee do overlap with the audit committee’s role in terms of internal control risks, but it is recommended to keep them both separate.

Question 9

Board - Roles and Responsibilities Nominations Committee

Accepted Answer

This committee looks at the structure of the board and largely consist of non-executive directors.

The role is to ensure that any appointments made are not biased and are in line with the specifications of the roles concerned, which includes appropriate balance of executive and non-executives directors, having the right mix of skills, knowledge, experience and gender balance, succession planning and that the directors are spending sufficient time on their duties.

Question 10

Board - Roles and Responsibilities Remunerations Committee

Accepted Answer

This committee consists of only non-executive directors. The role is to reviews pay scales, the proportion of different types of pay, the period in which performance-related pay becomes payable, what proportion of a pay package consists of the performance-related component and to ensure that rewards are disclosed and transparent.

Question 11

Board - Roles and Responsibilities Chairman

Accepted Answer

``` Runs the board of the Company Appointed by the other Board member Role as Non-Executive Directors Reports to the Shareholders Chair all Board meetings, annual general meetings and shareholder meetings Key representative to the general public ```

Question 12

Board - Roles and Responsibilities Chief Executive Officer (CEO)

Accepted Answer

Runs the day-to-day operations of the company
Appointed by the Board
Role as Executive Director
Reports to the Chairman and board
Chair all key operational and management meetings
Key representative to employees, customers, suppliers

Question 13

Stakeholders

Accepted Answer

A person or group who has an interest in or can be affected by an organization’s activities.

Question 14

Stakeholders Internal

Accepted Answer

Employees Management Trade unions

Question 15

Stakeholders External

Accepted Answer

``` Customers Suppliers Competitors Government Local Community ```

Week 6 Flashcards