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Question - Disney Holdings Ltd is a publicly listed company with its board composition as follows:
The board of directors consist of 7 members.
The board chair holds 30% shareholding in the company who is also one of the nonexecutive directors.
There are 4 members as executive directors; 2 of which are the company's CEO and CFO itself.
It also has one sub-committee, known as "audit committee". This committee has 3 members, which includes: the chair, an independent director and the CFO. They are competent enough to provide specific information about the company.
Required - Review the structure of the board above and discuss potential areas that can lead to Disney's governance failure.
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