As a corporate governance expert, the company (Prime Energy Ltd) have commissioned you to review the structure and composition of its Board of Directors. You should familiarise yourself with the company (outlined below) and provide at least five recommendations that outline and justify how Prime Energy can restructure its Board of Directors so that it follows best practice in this area and complies with the UK’s Corporate Governance Code 2018.
The report and your recommendations will be discussed at the Board’s next quarterly meeting.
“Prime Energy Ltd is a private sector company that supplies gas and electricity to homes and commercial properties in the UK. They are planning to list on the London Stock Exchange within 12 months and the funds raised will help finance their strategy to expand into European markets over the next five years.
An important part of the company’s expansion plan was the release of their first sustainability strategy, but this was delayed following negative media coverage about the impact the company is having on climate change. Currently the company’s Board of Directors consists of four Executive Directors (three male and one female), and one female Non-Executive Director.
The company’s Chief Executive Officer (CEO) acts as the Board’s Chair and the Non-Executive Director is the cousin in-law of the CEO.”
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