Question: 

1.“The directors of companies, being the managers of other people’s money cannot be expected to watch over it with the same anxious vigilance with which (they) watch over their own”.–Adam Smith, The Wealth of Nations

(Tricker 2015, p. 53).–(20 Marks)

(a)Identify which theoretical context this statement is situated and examine the practical relevance of this to contemporary corporate governance practices in Ghana. Justify your answer by relating it to the governance issues related to the Ghanaian Financial Industry and examining the specific practice of corporate governance that is being implied.(8 Marks) 450 words + or–10% 

(b)Evaluate the impact of this practice as identified in (a) on the collapse of some of the Banks and other Savings and Loans Companies in the financial sector in Ghana.(6 Marks) 450 words + or–10% 

(c)Enumerate six (6) relevant practical recommendations for possible consideration by the Bank of Ghana to reduce this practice within the banking sector.(6 Marks).450 words + or–10%.

2. “A post –Enron international economic order establishes the fact that without the rightful institutional policy framework ably supported by a watchful eye demonstrated through control and direction of corporate resources by all relevant stakeholders, the exercise of corporate leadership could always spin out of control”(Dawuda, 2016). For his part, Tricker (2015) observes,“Boards have considerable freedom to delegate board functions to management. This interplay between the board and management raises a crucial aspect of corporate governance–where do boards focus their attention”(p. 182). Relate these theoretical postulations to the following statement: