Question 1.Act.12: What might financial institutions wish to discuss with the d...
What might financial institutions wish to discuss with the directors of a business? Try to think of at least two financial and two non-financial aspects of the business.
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Some of the more important aspects that are likely to attract their attention include:
- objectives and strategies adopted
- trading performance
- internal controls
- policies regarding mergers and acquisitions
- major investments and disinvestments
- adherence to the recommendations of the UK Corporate Governance Code
- corporate social responsibility
- directors’ incentive schemes and remuneration.
This is not an exhaustive list. For shareholders, and therefore owners, of a business, anything that might have an impact on their wealth should be a matter of concern.
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