Accounting Multiple Choice Question – 29 May 2025

Bob is currently full-time executive director of The Mighty Staffie plc, a FTSE 100 company.

He has been approached by the executive directors of Bad Yorkie plc, another FTSE 100 company, who would like Bob to take on the role of chairman of their plc in addition to her existing role with The Mighty Staffie plc.

In this situation, the guidance provided by the UK Corporate Governance Code means that?

Select ONE answer:

1. Bob should be allowed to accept the offer
2. Bob should not be allowed to accept the offer
3. Bob should only be allowed to accept the offer if she can show she has the available time
4. Bob should only be allowed to accept the offer if the non-executive directors of both companies agree

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct == > As a full-time executive director of a FTSE 100 company, the guidance is that Bob should not be permitted to take on the chairmanship of another FTSE 100 company. This revision is set out in provisions supporting main principle B3 (effectiveness: commitment) of the Code.
3. Not correct
4. Not correct

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