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Poh Kong Swot Analysis

Autor:   •  October 20, 2015  •  Business Plan  •  281 Words (2 Pages)  •  895 Views

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Miriam Hutt is an accountant for the past ten years and she has been appointed as a finance director in Siva PLC. It is a larger retailer and public listed company incorporated in U.K. She found out that Siva plc Company has a problem of Corporate Governance (CG).

 The first problem of CG face by Siva PLC is the recruitment of directors in this company. The code stated that the board should give an appropriate explanation when the company did not look for external search consultancy or open advertising for the recruitment of a chairman or a non-executive director. In fact, Siva family is the largest shareholders as they holding 45% of the shares so they can dominate the board of this company. Therefore, they can recruit their own family members to hold the top position in this company without giving opportunities to external sources to join this company. Thus, there is no compliance with the code.

The second problem of this company is the diversification in the board. The code stated that the board should consist of diversity in terms of age, gender and race in order to ensure the progressive refreshing of the board. In fact, Miriam realized that she was the youngest director and the only female in the board of this company. Thus, there is no compliance with the code.

The third problem of this company is the board balance. The code stated that the majority of the board should be non-executive directors. In fact, there are only two non-executive directors and eight executive directors in this company.  This company should consist of at least five non-executive directors. Therefore, there is no compliance with the code.

 

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