The Professional Accountant Assignment Essay Example | Topics and Well Written Essays - 2000 words

The Professional Accountant Assignment - Essay Example In this case, the definition of the independent directors may vary. An independent member of the board should be in depend in terms of not just the definition but also in terms of the structure of his or her work and how he relates to the firm. They have to be independent from the executives of the firm with regard to the financial gains. The new governance is very difference from the UK cooperate governance standards. For instance, it will have to include a council o a maximum of 100 members who will be in control of the firm with regard to overseeing the decisions of the firm through voting. This is very different from the corporate governance for UK cooperates because they do not usually have these (Solomon, 2011). This is however necessary for the cooperative because as Lord Myner said in his report, the cooperative should always be in the control of its owners. In this regard, he proposed that there must be as many members of the council in order to make sure that they oversee the decisions and actions for the executives. Corporations do not have this kind of government and only depend on bound members and the CEO as well as the chainman to the board. However, for a cooperative, this may be necessary on order to guarantee that the vested interests of the cooperative members have been achieved (Mallin, 2013). The other difference between the new structure in the cooperative and the UK cooperate structure is the senate which will be elected by the council members. This senate will help co-ordinate the activities of the council. It will also help in coordinating the relationships and operation of the council, the board and the executives of the cooperative. This is different from the standard UK corporate governance as these corporations do not have a senate or even a council (Thompson & Wright, 2013). The non-executive directors are involved in the strategy development by contributing to the processes they help in this by challenging