[hafsa]

For the part of a of q1 i ended up writing how NED’s should scrutinize a directors performance to make sure he was beung payed appeopeiately so shareholders get VFM. how they must make sure a director was being paid enough to attract retain and motivate them. Something they were struggling with.

part b was a lot easier I guess with having to write about the components of a reward package, basic salary, pension, performance related bonus,shares and share options and benefits in kind. All of these would help them reduce the high turnover, lead to thhe implementation of strategies, overcone shareholder concerns of an unstable board.

For part c I wrote that the targeted individuals should not be from such a small group. They should broaden their search and look for indivuals with skills that their current board lacks. Who should have an idea about divetsification, previous experience with mergers. lastly, the current NEDS were easily ignored and the directors who all were from the same background grouped up against them. so they shouldve bought in more key players with skills from outside that small group to reduce this problem. Because this was increasing the agency problem at OG.

for part d, i am pretty sure i lost the professional marks.
di) was a repition of how we would benefit from our key players staying. to make they stay we should give them the incentive of higher pay for performance. Had to rewrite most points but with different aspect for the scenario.
dii) Was risks we were exposed to because of such an unstable work environment. I said we were exposed to the risk of strategies failing, having a bad example set for the rest of the co, discouraging employes at a lower level. Cultural risk in the sense that the new key players would require time abd understanding to understabd the culture of the entity. i twisted the scenario and said if we did not overcome this we may face financial risk ie risk losing our going concern assumption.

diii) Asked if diversifying was a way to overcome entrepreneurial risk. i disagreed. as diversifying was a means to reduce the risks we faced in a single sector , so we entered new sectors, undertook new ventures . The very meaning of the risk. i guessed that from the word entrepreneur. So where it was better for the company to diversify given the low proce of oil however it was not a solution to overcome entrepreneurial risk.

question 4 was a blur.
a) Shouldve written how a board should manage limit uncertainity. instead wrote how jalka board failed to innovate, strategies, carefull aloocate its resources. Kind of mixed CG and risk.
b) Wrote the risks it faced like strategical, financial, technological, the riskof failing to grow with timr and adapt to new environment. And i cant remember what i wrote more.

c) it asked what teleological approach was and whether the board had breached it. and how?

It had breached the ethical code as the consequence was bad. It ended in solvenxy with the loss to community. and explained this. Poorly for sure.

q2) A nd b were easy. I had to rush in this question.

c) i wrote safeguards, like segregation of duties(couldnt explain this one) having an internal control system, an audit committee, chinese wall ,rotation of firm not partner as the ceo was friends with the managing partner and if they cant reduce risk to just back off and end engagement.

i studied p1 for a very short time.So i dont know if i performed well or wrote well enough to pass. I applied a strategy similar to what i used for p7. I just hope it works and i pass.these are my answers. It bothered me. I hope somebody can shed light on my answers.
Praying for the best!!!

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