Corporate Governance Quiz: Shareholders' Rights and Management Delegation
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Questions and Answers

What is the main purpose of the Delegation of Authority Framework?

  • To provide oversight on all activities of the business
  • To support effective decision-making and accountability (correct)
  • To delegate responsibilities to external stakeholders
  • To manage risks and assets of NNPC Limited

    • Who is responsible for providing oversight on all activities of NNPC Limited?

  • The management of NNPC Limited
  • The Board of Directors (correct)
  • The Board Committees
  • The stakeholders

    • What do the objectives of the Framework aim to achieve?

  • Efficient management of responsibilities
  • Sound stewardship of resources and assets
  • Consistent accountability and reporting
  • All of the above (correct)

    • In what ways does the Board support effective decision-making?

    <p>By providing clarity of roles and responsibilities</p> Signup and view all the answers

    What is the significance of delegating responsibilities to committees and management?

    <p>Speedy and efficient decision-making</p> Signup and view all the answers

    What other objectives may be approved by the Board from time to time?

    <p>Such other objectives as the Board may approve from time to time</p> Signup and view all the answers

    Who has the authority for the prosecution, defense, arbitration, or settlement of material litigation within NNPC Limited?

    <p>BAC</p> Signup and view all the answers

    Which entity has the authority to approve NNPC's annual budgets?

    <p>NNPC Limited Subsidiary CEO</p> Signup and view all the answers

    Who is responsible for significant changes in accounting policies or practices within NNPC Limited?

    <p>BSC</p> Signup and view all the answers

    Who has the authority for setting treasury policies within NNPC Limited?

    <p>BSFIC</p> Signup and view all the answers

    Who holds the authority for significant tax restructuring exercises within NNPC Limited?

    <p>BSFIC</p> Signup and view all the answers

    Who is responsible for asset disposals within NNPC Limited?

    <p>BSFIC</p> Signup and view all the answers

    Who appoints the NNPC Limited Board of Directors?

    <p>The shareholders</p> Signup and view all the answers

    Which entity is accountable for NNPC's overall performance and strategy execution?

    <p>The CEO</p> Signup and view all the answers

    What is the purpose of the Board Committees mentioned in the text?

    <p>Overseeing effective NNPC performance</p> Signup and view all the answers

    Which document guides the DOA Framework according to the text?

    <p>PIA 2021</p> Signup and view all the answers

    What is the role of NNPC's subsidiary boards according to the text?

    <p>Acting in NNPC's interest with detailed roles and responsibilities documented</p> Signup and view all the answers

    What are the Core Principles of the DOA Framework mentioned in the text?

    <p>Delegating day-to-day management and implementation of strategic objectives to Management</p> Signup and view all the answers

    What type of decisions does the Delegation of Authority Matrix cover?

    <p>Strategy and Policy, Risk Management, Governance and Board, Human Resource Management, Legal, and Financial Matters</p> Signup and view all the answers

    What does the CEO need to do if any matter requiring pre-approval arises?

    <p>Seek approval from the Board Committee responsible</p> Signup and view all the answers

    Which decision-making item should consult with other relevant committees to achieve wider input before submission to the Board?

    <p>Governance and Board</p> Signup and view all the answers

    To whom can the CEO delegate functions according to the text?

    <p>Chief Financial Officer or relevant Senior Management Staff</p> Signup and view all the answers

    What type of matters are reserved for the Shareholders according to the text?

    <p>Appointment and remuneration of Directors, amendment of articles of association, approval of dividends, and changes to NNPC's legal structure</p> Signup and view all the answers

    Who must endorse delegated decisions impacting the entire organization prior to presentation to the Board?

    <p>The Senior Management Team</p> Signup and view all the answers

    Which of the following is not considered a Decision Making Item as per NNPC Limited's Delegation of Authority Framework?

    <p>Appointment, remuneration and removal of external auditors before the first AGM</p> Signup and view all the answers

    Which of the following is not included in the Risk Management and Assurance Matters as per NNPC Limited's Delegation of Authority Framework?

    <p>NNPC strategy formulation</p> Signup and view all the answers

    According to NNPC Limited's Delegation of Authority Framework, which of the following is not related to Governance and Board Operations Matters?

    <p>Appointment, remuneration and removal of external auditors</p> Signup and view all the answers

    Which aspect is not within the scope of Governance and Board Operations Matters according to NNPC Limited's Delegation of Authority Framework?

    <p>Changes to mission, vision and values</p> Signup and view all the answers

    Which of the following is not a part of the Risk Management and Assurance Matters as per NNPC Limited's Delegation of Authority Framework?

    <p>NNPC strategy formulation</p> Signup and view all the answers

    According to NNPC Limited's Delegation of Authority Framework, which item does not fall under Decision Making Items?

    <p>NNPC Ltd risk appetite and risk strategies</p> Signup and view all the answers

    Study Notes

    • NNPC Limited's Delegation of Authority Framework outlines various decision-making items and authorities within the organization.
    • Decision Making Items: 1. Definition and amendments to mission, vision and values, 2. NNPC strategy formulation, 3. NNPC policy articulation, reviews and approval, 4. Mergers, acquisitions, joint ventures and disposals, 5. Investor relations strategy, 6. Amendments to NNPC’s organisation structure, 7. Extension of NNPC’s activities into new businesses or geographic areas, 8. Changes to subsidiary company’s logo, 9. Changes to subsidiary domain name, 10. Changes to mission and values of subsidiary company.
    • 1.8.2 Risk Management and Assurance Matters: 1. NNPC Ltd GRC frameworks, 2. NNPC Ltd risk appetite and risk strategies, 3. Appointment, remuneration and removal of external auditors before the first AGM, 4. Appointment, remuneration and removal of external auditors.
    • 1.8.3 Governance and Board Operations Matters: 1. Memorandum and Articles of Association, 2. Board and Board Committee charters, 3. Corporate Governance policies, 4. Performance evaluation of NNPC Board & Committees, 5. Board succession planning for Non-Executive Director(s), 6. Succession Planning for key officers of NNPC Limited, 7. Appointment and removal of Directors of NNPC Limited, 8. Appointment and removal of Directors in Subsidiaries, 9. Executive Director(s) remuneration, 10. Non-Executive Director(s) remuneration, 11. Determination of performance criteria and evaluation of CEO, 12. Determination of performance criteria and evaluation of other Executive Director(s), 13. Appointment, evaluation and removal of the Company Secretary, 14. Changes to Board structure, 15. Changes to Board composition.
    • The policy to be presented to each Board Committee will be in line with the mandate of the Committees per their charter and applicable governance provisions as prescribed in CAMA 2020 or NCCG 2018.

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    Description

    Test your knowledge of corporate governance with this quiz on matters reserved for shareholders and the delegation of responsibilities to management. Explore specific policies and procedures related to the execution of roles and responsibilities.

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