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Sir in chap no 2 question 1 states that:
The OECD has put fwd some principles of corporate governance. Which of the following is not one of these principles.
A. Disclosure and transparency
B. The board should have a balance of ED’s and NED’s
C.There should be strategic guidance of the entity
D.The right of all stakeholders should be recognised.I chose option C.
But the answer is wrong can you please explain how?There is a difference between the OECD principles and the Corporate Govrenance Code, whihc is the UK approach to implementing the OECD principles.
OECD does say that the board should offer strategic guidance. It does not specify a balance of EDs and NEDS. For example, in Germany they have teo boards, one of them a supervisory board that fulfills an oversight function. In the UK there is only one board and on that the NEDS perform a supervisory function.
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