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Vanguard Energy Group is a multinational energy group, recently listed on the stock exchange, Mr. David Ng, the current Chief Executive has also been appointed as Chairman of the Board of Directors. He is keen on imposing his views on the group and has made it clear that he is prepared to work with those who remain loyal to his cause and his views. His shares in the company were also purchased with the company's funds.
Q1) Outline any governance and related issues arising from Mr. Ng's appointment.
Q2) The management of a company is often different from its owners. Explain the principle that underlies this separation and the challenges that often arise from this relationship.
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