CIMA BA4 · Chapter 6 · Question 1 of 10
Why do corporate governance codes recommend that the roles of chair and chief executive should not be held by the same individual?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) To avoid unfettered powers of decision being concentrated in one person
Explanation
Splitting the roles ensures a clear division of responsibility between running the board (chair) and running the business (chief executive), so no one individual has unchecked power. It is a governance recommendation rather than a general legal prohibition, and the chief executive is an executive director.
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