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BCD Learning Design

Created on September 11, 2023

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Transcript

Retail Shareholder

Creditor

Select each button to read through the role

Independent Board Director

Chief Executive Officer

Institutional Shareholder

CHIEF EXECUTIVE OFFICER

If you are appointed to this role you will have direct control over your own remuneration but it is not in alignment with best practice.

INDEPENDENT BOARD DIRECTOR

You are aware from your directorship training that good corporate governance suggests that the committee should be structured so that it has at least three members all of whom are non-executive directors and a majority of whom are independent and is chaired by an independent director.

INSTITUTIONAL SHAREHOLDER

Despite your fund having a significant shareholding the firm (your fund has a 2.01% stake in the company), this firm only represents 0.05% of your fund’s portfolio. Your fund has a generally favourable view of the performance of the management team.

RETAIL SHAREHOLDER

You represent an individual shareholder. You purchased your shares in the company using an inheritance from your great uncle. This represents your largest investment asset apart from your house and is a significant portion of your wealth. Your share portfolio contains only this company’s shares.

CREDITOR

You represent a bank which has provided a secure debt facility to the firm. The loan represents 0.03% of the bank’s loan book. The loan is considered senior debt and has first claim on the firm’s assets in the event of liquidation. The interest coverage ratio for the firm is presently very high.