You are a CIMA (Chartered Institute ofManagement Accountants) student employed as a company secretary for a...

You are a CIMA (Chartered Institute ofManagement Accountants) student employed as a company secretary for a small family owned limited company. The board is made up of family members, with only one family member holding an executive position as MD. There are some disagreements within the family regarding the will of the recently deceased chair of the board, the mother of the family. The board have twice voted to pay pension contributions to one of the members of the family on the board as non-executive director, a brother of the MD, and this has been approved by majority in meeting. However, you have since been advised by the MD not to make the payment.What would you do?

answer the above question and back up your answer with logical reasoning. Include a comment to EACH of the 5 critical pieces of ethics (INTEGRITY, OBJECTIVITY, PROFESSIONAL COMPETENCE, CONFIDENTIALITY and PROFESSIONAL BEHAVIO);how they would be disregarded, and what would make it right? Minimum of 250 words is required.

Solutions

Expert Solution

INTEGRITY You need to remain straightforward and honest both with the managing director and the board.
OBJECTIVITY You cannot allow the undue influence of family issues to override your professional judgment.
PROFESSIONAL COMPETENCE AND DUE CARE There is a need to act diligently in accordance with professional standards, the decision has been approved by the board.
CONFIDENTIALITY You will not compromise confidentiality by further raising the issue with the board.
PROFESSIONAL BEHAVIOUR Failure to carry out the board’s actions may mean failure to comply with relevant company regulation, against your professional duty.

As the issue have already been approved by the board, this situation risks putting you in a position where you fail to comply with company regulation and your professional standards. To resolve this issue you need to be honest and straightforward towards all parties involved. Make sure to act professionally, and not to let family issues influence your judgment.

ekkarill92 answered 1 year ago

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