Main Examination Period 2019
BUSM060 Corporate Governance Duration: 2 hours
YOU ARE NOT PERMITTED TO READ THE CONTENTS OF THIS QUESTION PAPER UNTIL
INSTRUCTED TO DO SO BY AN INVIGILATOR
Answer THREE questions in total:
ONE question from Section A.
TWO questions from Section B.
If you answer more questions than specified, only the first answers (up to the specified
number) will be marked. Cross out any answers that you do not wish to be marked
Calculators are not permitted in this examination.
Complete all rough workings in the answer book and cross through any work that is not to be
assessed.

Possession of unauthorised material at any time when under examination conditions is an
assessment offence and can lead to expulsion from QMUL. Check now to ensure you do not have
any notes, mobile phones, smartwatches or unauthorised electronic devices on your person. If you
do, raise your hand and give them to an invigilator immediately.

It is also an offence to have any writing of any kind on your person, including on your body. If you
are found to have hidden unauthorised material elsewhere, including toilets and cloakrooms it will
be treated as being found in your possession. Unauthorised material found on your mobile phone
or other electronic device will be considered the same as being in possession of paper notes. A
mobile phone that causes a disruption in the exam is also an assessment offence.

EXAM PAPERS MUST NOT BE REMOVED FROM THE EXAM ROOM
Examiner: Dr. Didem Gundogdu



© Queen Mary University of London, 2019


Page 2 BUSM060 (2019)

SECTION A
Answer ONE question in this section.

Question 1
a) Summarise the key features of the “Comply or Explain” approach to corporate
governance in the UK.
(25 marks)
b) Critically assess the effectiveness of this approach by making reference to relevant
studies in corporate governance literature.
(25 marks)
(Total: 50 marks)
Question 2
a) Critically evaluate the importance of diversity for board effectiveness.
(20 marks)
b) Identify three reports which focused on diversity matters in the UK. Summarise the key
features and recommendations in each report.
(30 marks)
(Total: 50 marks)
Question 3
a) Summarise the key aspects of the director remuneration debate around the globe.
(20 marks)
b) Identify the three principles listed in the UK Corporate Governance Code (2018) on
director remuneration.
(12 marks)
c) Identify and briefly explain the key components of directors’ remuneration packages.
(18 marks)
(Total: 50 marks)
BUSM060 (2019) Page 3

SECTION B
Answer TWO questions in this section.
Question 4
Some definitions of corporate governance give a privileged status to the providers of
finance ahead of other stakeholders. Critically evaluate the arguments for adopting this
view.
(Total: 25 marks)
Question 5
Critically discuss why more companies are becoming interested in their social and
environmental policies. Support your argument by referring to the relevant codes,
guidelines and reports issued in the UK or elsewhere.
(Total: 25 marks)
Question 6
It has been argued by some that global corporate governance is converging on the
Anglo-American model; and by others that a number of factors are hindering this global
homogenisation of corporate governance models. Critically evaluate the reasons for both
perspectives by making reference to relevant studies in corporate governance literature.
(Total: 25 marks)
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