Discuss whether the board and sub-committee structure

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Discussion Questions - 1. "The recent wave of financial scandals indicates that regulators are often slow in responding to those scandals, bringing enforcement actions against corporate wrongdoers, and preventing widespread effects of aversion towards the scandal." Do you agree with the given statement? Why?

Case study

Purpleflex PLC is a large publicly listed company that produces a variety of products for the building industry. Harry Humber has been the CEO and Chairman of Purpleflex since the company's inception almost 12 years ago.

In addition to Harry, the senior executives of Purpleflex include:

Benjamin Bamert - chief financial officer (CFO)

Angela Adventis - chief investment officer (CIO)

Penny Pontomac - chief operating officer (COO).

The current board of directors is made up of the four executive directors noted above and three non-executive directors:

Ronald Ravens - also a substantial shareholder with 23% shareholding

Sonia Spiteri - a nominee director representing the interests of a debt-funding syndicate to Purpleflex

William Wolters - an independent director with a number of years' experience in the building industry.

The board has an audit committee which meets regularly during the year:

Chaired by Benjamin

Also includes Sonia and William - neither Sonia nor William has relevant financial experience.

Discuss whether the board and sub-committee structure/composition of Purpleflex PLC breaches the UK FRC Corporate Governance Code and what rectification measures, if any, are required. Your answer should refer to case facts and relevant paragraph number(s) of the Code.

Reference no: EM132652707

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