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i passed f2 with 54% with only one night studying seriously, self study and im satisfied
@pauld123 said:
Okay so next question. There was one about corporate governance & ethics. Mary is a Finance Director in company A and Non-exec director in company B. She sits on risk & rumeneration committees in Company B. Johnny is CEO of company B and Non-exec director at company A, he sits on remuneration committee in Company A.The options were: (A)Mary shouldn’t be on a risk committee, (B)Neither should be on two committees, (C)Johnny shouldn’t be CEO of one company and Non-Exec on another at all, or (D)that at least one of them should step down from the rumenartion committee.
My thinking was – The first two are just wrong as finance Non-Execs should be on risk committees, and You want non-execs on more than one committee to make use of them. The third one is trickier as it is a potential conflict of interest, but the option in the question was universal not case specific. It said a CEO should never be Non-exec elsewhere. Well it is common practice in USA, rare in OZ and about 20-30% in UK. So my thinking was that that was wrong. That leaves the final option being the only one left and also the only one that dealt directly with the objectivity problem of them judging each other’s pay. So my answer was – At least one should step down from the rumenertion committee.
What does everyone else think?
hi, i think the answer is C, because based on the corporate governance code, a director cannot be CEO in one company and any type of director in another company, provided he is employed full time in the current job (CEO).
tinotendah , actually there was 2 question on high and low, one was the formula you have to choose, and the other with 60% and 100% of 10000 production. you had to use high and low method to find the 80%.
hope u pass it though 🙂