Tag: investing

Alex is the chief executive of Big staffie plc.

The company’s remuneration committee has recently been putting together a new long-term incentive scheme for Alex, the details of which have now been agreed.

However, under the requirements of the UK Corporate Governance Code, before matters can be finalised the scheme should be approved by the company’s….?

Select ONE answer:

1. Board of directors
2. Shareholders
3. Chairman
4. Non-executive directors

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 == > This is set out in provisions supporting main principle D1 (remuneration: level and components of remuneration) of the Code.
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

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

This work is licensed under a Creative Commons Attribution 4.0 International License.

Big Staffie plc is currently drawing up a shortlist of potential members of its audit committee.

Under the UK Corporate Governance Code, the shortlist must comprise only?

Select ONE answer:

1. Independent non-executive directors with recent and relevant financial experience
2. Independent non-executive directors with at least one who has recent and relevant financial experience
3. Non-executive directors with recent and relevant financial experience
4. Non-executive directors with at least one who has recent and relevant financial experience

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 == > Provisions supporting main principle C3 (accountability: audit committee and auditors) of the Code clearly state that the requirement is for independent non-executive directors, with at least one member of the committee needing to have recent and relevant financial experience, but not all of them.
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.