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ACCA Strategic Professional · Strategic Business Leader · The board of directors

Dunmore plc, with a unitary board, wants to strengthen independent oversight without moving to a two-tier structure. Which action best achieves this within the unitary model?

Appointing a majority of independent non-executive directors and separating the chair and chief executive roles best strengthens oversight within a unitary board. It creates independent challenge and prevents one person holding unfettered power, achieving the benefit of separation without a second tier.

  1. AAppoint a majority of independent non-executive directors and separate the roles of chair and chief executiveCorrect
  2. BAppoint the chief executive's deputy as chair to ensure continuity
  3. CReduce the number of non-executive directors to speed up decisions
  4. DRequire non-executive directors to manage a business division

Explanation

Within a unitary board, independence is improved by having sufficient independent non-executives and splitting the chair and CEO roles so that no individual has unfettered power. The other options reduce independence or blur oversight with management.

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