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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