ACCA AA · Chapter 2 · Question 10 of 10
Why do corporate governance codes recommend that the roles of chair and chief executive should not be held by the same person?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) To avoid one individual having unfettered powers of decision
Explanation
Separating the running of the board (chair) from the running of the business (chief executive) provides a check and balance so that no single individual dominates decision-making. Governance codes do not require the chief executive to be an accountant, and the board chair should not chair the audit committee.
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