QUESTION 2 (10 MARKS)
A. The main theories that have affected the development of corporate governance are agency theory, transaction cost theory, stakeholder theory, shareholder theory and stewardship theory. Required: Discuss THREE (3) types of Agency costs in corporate governance. (6 marks) B. Today's best practices in corporate governance centre around the meaning of an effective board. To have an effective board, one has first to determine the roles and duties of directors.
Required: Elaborate TWO (2) potential benefits of having a Board of Directors. (4 marks)