Board Structure & Board Balance
When listing the PC house PLC the board …show more content…
The chairman is responsible to lead the board towards the success of the company & CEO is responsible to manage the company according to the decisions made by the board. However in PCH PLC both CEO & chairman positions were held by Mr. Rishard who is the founder of PCH PLC. There are both favorable & unfavorable consequences of this situation.
If the same person is holding the chairman & CEO positions, it is called as “Governance Domination”. This would enable that person to manipulate the decisions of the board by using his expertise knowledge of the company. Apart from that it would enable the chairman to dominate the company’s operations by using his excessive power as the chairman & CEO. This might be a one reason for the failures occurred in PCH PLC. Mr. Rishard manipulated the stock market, disobeyed to tax rules & misleads customers by using his dominant power & …show more content…
The findings part attempts to encapsulate about the success of the PCH PLC until it collapsed & also it was identified how company’s success lead the company to enter in to the stock market as the first emerging IT conglomerate that was to be listed in CSE. Further the chapter continues with understanding the board structure of PCH PLC & experiences of board of directors. Then chapter starts to describe about the functions of the board & board committees of PCH PLC. The company consisted with three board committees & each committee had separate functions to be performed relating different fields of the company. After getting an understanding about the company & its structure, it identifies about the reasons behind the failure of PCH PLC. Under the discussion part corporate governance implications were evaluated with regard to the board structure & board balance, Chairman’s role as the CEO, board committees, external auditor’s responsibility, agency dilemma, behavior of shareholder favoritism and significant changes in the board of directors after the