BM55-3.

5-2 Ethics & Corporate Governance

Individual Assignment

Page 1 of 4

Module Code: BM55-3.5-2 ECG

INDIVIDUAL ASSIGNMENT (30% weightage)
Assignment Description
This assignment comprises 30% of your total marks for this module. Please answer all,
Question 1, Question 2 and Question 3.
Question 1
Board diversity is one of the key issues in ensuring effective board of directors. Critically
evaluate the validity of this statement of a public listed company in any country that adopts
this policy.
(Total: 40 marks)
Question 2
Company Enigma has just been listed on Bursa Malaysia. The CEO is setting up a new
division called Ethics and Compliance in order to integrate governance into each and every
employees. As the member of this division, you have been appointed as the steering
committee to develop a strategy to ensure the right company values and code of conduct
which will be part of the employees corporate DNA.
Required:
Using your personal experience in organising/participating in a charitable event, identify and
explain the impact of such activities to society and how this can promote good code of
conduct in your company.
(Total: 30 marks)
Question 3
Bank B did not have a proper system of control in place to keep watch of all activities of its
employees and there were no risk management procedures at the Asian branch during that
time to check the trading activities that were carried out. A lack of active involvement by the
Board and management of Bank B, allowed Mr N to chalk up astronomical losses from his
trading activities that brought the old financial institution to its knees. Bank B was one of the

A.P.U Level 2

Asia Pacific University of Technology & Innovation

201601

BM55-3.5-2 Ethics & Corporate Governance

Individual Assignment

Page 2 of 4

oldest merchant bank until it went into receivership. Bank B established a small office in Asia
in the late 80s named B Securities (Asia) Limited. Its main business was on equities and
futures trading on the floor of the Asian International Monetary Exchange. Mr. N was
transferred to Asian Branch as General Manager - his duty being to purchase and maintain a
seat on Asian International Monetary Exchange and to hire traders and staff. He was however,
not authorised by the Bank to trade. Despite this, Mr. N soon took the necessary qualifications
and began trading with his team of traders. Hence, in addition to being a general manager and
leader of the trading team, he was also the de facto head of the back office, given his vast
experience in operations. Such an arrangement made it possible for Mr. N to approve
unauthorised transactions carried out in the front trading room and fabricate spurious
information to the main office. Although the fact that Mr. N was holding too many positions
was pointed out in an internal audit report in early 90s, the Bank continued to allow him to
carry on with his duties. Due to the negligence on the part of the head office in taking heed to
the internal audit report, Mr. N was able to cover up his huge trading losses by putting it
through the unused error account (88888), which was set up to cover losses of inexperienced
traders and was hidden away from the report to the head office. He manipulated the day
trading books and created fictitious contracts that never existed in order to record profits in the
reports that were sent to the head office in London. By the end of his game, which the
management was completely unaware of a whole three years, Mr. N was sentenced to six and
a half years jail after chalking up $800 million of losses which led to the bankruptcy of the
Bank.
Required:
a)
b)

Evaluate the problems concerned the above scenario in terms of corporate governance
(8 marks)
Explain the measures that could have been taken to prevent the situation in the above
scenario.
(8 marks)

c)

Discuss the importance of Cadbury and Turnbull Report in this scenario.

(14 marks)

A.P.U Level 2

Asia Pacific University of Technology & Innovation

201601

BM55-3.5-2 Ethics & Corporate Governance

Individual Assignment

Page 3 of 4

(Total: 30 marks)
(Total marks: 100 marks)
Specification of Assignment:
1.

You should have a minimum of 6 references to substantiate your research and

assignment writing. You are REQUIRED to use Harvard referencing methods for this
assignment.

2.

The assignment should be well-structured and the use of proper paragraphs for topic
separation is encouraged.

3.

The assignment must adhere to standard academic documentation standards:

4.

Font Type: Times New Roman

Font Size: 12pts
Line Spacing: 1.5-line spacing

The assignment to be written between 2500-3000 words.

MARKING SCHEME
Your assignment will be marked based on the following criteria:Content & Facts systematic & analytical ability

45 marks

Development & Discussion

30 marks

Language & Grammar

10 marks

Referencing

10 marks

Overall effectiveness

5 marks
TOTAL

A.P.U Level 2

100 marks

Asia Pacific University of Technology & Innovation

201601

BM55-3.5-2 Ethics & Corporate Governance

Individual Assignment

Page 4 of 4

Marks are awarded based on the following guidelines:

Grade
75%-100%
(A A+)

65% 74%
(B - B+)
50% 64%
(C - C+)
Below 50%
(F - F+)

A.P.U Level 2

Description of performance level

There were mature and interesting points based on the answer provided. You
make clear your position based on your understanding. Each point supported
with valid explanation. Shows understanding and reflection of subject
matter. Minimum 4 to 5 points given. References to relevant models,
theories and concepts have been made.
There were sufficient points raised with valid explanations provided.
Position supported in theory/model-based arguments. There is adequate
understanding of subject matter. Minimum 4 to 5 points given. References
to relevant models, theories and concepts have been made.
Minimal understanding of subject matter. Insufficient points given and
explanations are unclear or not helpful in clarifying points. Not enough
reference given.
No clear understanding of the subject matter. Points are off-topic and do not
relate to research. No understanding of theories and concepts taught. Not
enough reference given. Numerous grammatical and spelling mistakes.

Asia Pacific University of Technology & Innovation

201601