Corporate governance

Topic 

Corporate governance

Instructions 

In this paper write about corporate governance in accordance with the class rubric.

Answer Preview

The Board of Ardent Leisure did their best to ensure that they complied with Principle 7 after the incident that killed four people. In that, they acknowledged that the incident occurred in their work premises and for that reason; they took up the responsibility, as well as all the necessary measures to ensure that the premises were renovated to ensure that such an incident does not happen again[1]. Additionally, the Board went ahead to measure the financial losses that were suffered by Ardent Leisure in order to establish the manner in which the financial loss would be recovered over the coming years, considering the effect that the incident had on the company, as well the shareholders.

After recognising the risk that was attributed to the incident with regard to investors, the Board formulated a strategy to ensure that other investments are made to ensure that the company is reinstated to the position that it was in before the incident[2]. For instance, there was a disinvestment by the Marinas and Health Clubs, therefore, to ensure that this disinvestment although significant did not fully distort the operations of the company. The Board came up with a portfolio that today consists with the market leading entertainment and leisure experiences[3]. The main strategy is to optimise each business strategically and operationally with the main focus of delivering a sustainable growth, as well as creating broader prospects for the company.

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