Regulation and Management in the Global Economy Case Study

Regulation and Management in the Global Economy - Case Study Example10 defines company edible for leadership structure of the notice of directors whereas sub-section A.2 has pass awayly explained division of responsibilities between head of the board and the executive military officer. The code states that the office of chairman and chief executive officer should not be held by the same individual and this detachment of roles must be set out in writing. In contrast to the principles of UK corporate authorities code, 2010 Imola plc is practically in violation of these principles. The role of the chairman has provided been restrained at leading the board for effectiveness in setting agenda for board meetings and in constructing relations between executive and non-executive directors. Despite the fact that code constrains chief executive officer to be the chairman of the board but in exceptional cases major shareholders must be consulted in this endeavor which in case of Imola plc can only be justified as an exception only if the major shareholders have also been consulted in advance to the appointment. Provided the company performance and restructuring, the decision for appointing same person as chairman and chief executive officers seems clear violation of duality clause of the corporate governance code.Section 2 of the corporate governance code, 2010 stipulates some principle regarding the effectiveness of the board, of which composition of the board has been specify in sub-section B.1 of the code, 2010. Sub-section B.1 states that the board of directors must be composed of individuals from diverse areas of expertise so that fit of skills and experience could be maintained efficiently and should be ground upon sufficient member size for better management, monitoring and evaluation. Imola plc has successfully implemented this principle by maintaining sufficient size board and directors from diversified backgrounds (Clarke & Branson, 2012). What Imola pl c has failed to implement is the balance between executive and non-executive board