Page 18 - CIMA OCS Workbook May 2019 - Day 1 Tasks

SUGGESTED SOLUTIONS

4 – Remuneration
Remuneration of directors should be adequate to recruit and retain individuals of the required
calibre, but without being excessive. Non-executive directors, (if appointed) could share some of
the responsibility for determining a transparent remuneration policy for board members, and to
evaluate their performance, particularly if part of the remuneration package is performance-
related.
5 – Relations with shareholders
The board has responsibility to ensure that there is an effective dialogue with shareholders. This
may become more important if the shareholder base is expanded at a future date in order to raise
additional finance.
VitaMine should ensure that the annual reports and accounts provide information to
shareholders and other stakeholders that is relevant and reliable and which enables them to
assess their investment in the company.
Conclusion

It is acknowledged that some of the issues noted above will necessarily incur additional cost if
implemented by VitaMine. However, the additional costs incurred may lead to improvements in
the way that the company operates and in the quality of decision-making. Any changes
introduced to improve corporate governance are likely to be viewed favourably by regulators and
decision-makers when submitting proposals to raise finance on the Eastland stock exchange.

Other suggestions, such as the formalisation of holding regular board meetings and recording
decisions at those meetings could be implemented very easily with minimal cost. Similarly,
allocating responsibility to a director to maintain a risk register (along with information relating to
management of risks identified) probably only formalises what currently happens on a day-to-day
basis.

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