Answer: 1

Corporate Governance is very important in any organization because it provides companies with
the rules and regulation to govern the company. It provides an appropriate structure to carry out
the day to day administration in the company. It makes sure functions are carried out properly in
the business and making sure that there is growth in the company. Corporate governance
provides board members a guideline which should be followed in an appropriate manner. It helps
the company to attain certain goals and objectives.
As discussed in the case there were many instances where the company diverted from the best
practices that were to be followed corporate governance:
1. As described in the case study, the meeting is just for the purpose of having it. There is
no punctuality by the members in the meeting. They are not punctual and are not taking
the meeting seriously. As mentioned in corporate governance these meetings are
conducted so that appropriate decision is made and to ensure proper functioning in the
company.
2. Any new member enters the meeting should be respected and should be made aware of
the things that are to be discussed in the meeting. All the members involved in the
meeting should be appreciated for their efforts. There should be attention given in the
meeting. As in the company, the CEO was on the phone and did not pay attention the
speaker.
3. The decisions that are taken in a board meeting should be collectively decided by the
other board members as well and not just one person. All of the members should be
consulted before making any decisions in the company. This will make sure that there are
no red flags in the decision-making. As in case Lim Palm Co. the decision was made by
one person.
4. In the family business as the decision is taken by a single body without any consultation
from the other board members. So, this shouldn’t be the case when your company is
public. As Lim Palm is a public company it needs to make sure the stakeholders,
shareholders and other members of the company are consulted before making any
decisions in the company.
5. If any new proposal is made in the company, it should be made sure all the people know
and not just one person. As in the meeting only few people had idea of what is being
 discussed in the meeting. Moreover, it is also required to go through all the important
stuffs that are to be discussed in the meeting so that people know and can share different
ideas.
So, these were the ways in which the company diverted from its corporate governance. For the
company to have loyal employees it needs to take care and show professionalism in the
company.

Answer 2:
High level of corporate governance leads to success in the company. By attaining high-level of
corporate governance, it would be very beneficial for the company. Below are its ways:
1. Control over management
High-level of corporate governance enables the company to gain good control over the
company. It makes sure that there is improvement in the management as well as in
functioning of the company. This will lead to high level of environment in the company.
As the management is controlled properly which will helps the company function
effectively.
2. Influential people in the company
By having higher levels of corporate governance in the company the scope of knowledge
and expertise is increased in the company. As now experienced people would be willing
the work with and in the company. This will result into higher success and growth rate.
3. Development of Trust
By gaining higher level of corporate governance the shareholders, stakeholders,
investors, are interested to invest in the company. This leads to development of trust in
the company. As new investments are made in the company, there is growth in the
company.
4. Decision-making
With high level of corporate governance in the company and expert people working for
us the decision-making is improved. As of now any of the decisions that could be taken
in the company would to be very thoughtful before taking any decision in the company.
Thus, this will lead to go to growth in the company.
5. Strategic plans
 With high level of corporate governance, experts working in the company, controls the
management in the company and makes appropriate strategic plans to attain growth in the
company. As now the plans that are developed will be followed properly which will
increase the chances of success in the company.
6. Ethics is a key principle of corporate governance. The integrity of anyone placed in a
corporate office or on a board of directors should be of a high level of integrity. They
must follow the code of conduct and demonstrate ethical behavior during the business
decision-making process.
At the end of the day, companies with a strong corporate system of governance will better
positioned to prosper both in short term and in long term, along with an experienced board with a
growth mindset and sustainability concern.

Answer 3:
As Lim Palm Co. is a family owned business wherein most of the decision is taken by Patriarchs
in the business. Patriarchs is the person who is a top of the company and takes decision on his
own. In my opinion, if we consider removing the hierarchy from the business than Adeline can
make a difference in the company. However, without that also she cannot consider an asset to the
company. As she is well experienced, she can make some changes professionally which may
lead to proper establishment of corporate governance in the company.
First of all, she needs to start working closely with Patriarchs. She should start by making sure
the company attains small goals. Because then only she will be able prove herself that what she’s
doing is the right and providing the company positive outcome. Now that she has started
attaining goals and adding value in the company the board of directors may take her word
seriously. As now Adeline has gained trust, she will be included in the meetings. Now Adeline,
will you have a chance to be heard in the meeting and respected. As we are aware that in
Singapore, majority are of the stakeholders and family friends and before they attend any
meeting, they have their small meet wherein they already take their decision so for Adeline she
also need maintain close relation with the other stakeholders.
However, the three IDs can work together and show their expertise in the work they are doing for
the company. They should also demonstrate their credibility and their commitment in the
company. By impressing the members of the board, she can have the power to influence the
decision making in the company. By getting close with the family members she can spread
awareness regarding the practice of corporate governance in the company and can add value in
the company.

Answer 4:
In order for IDs to add value for the shareholders and stakeholders in family firms’ IDs need to
possess skills in the field of law, finance, sales and marketing, administration, operations,
corporate governance, communication, etc. moreover, IDs should make sure to have appropriate
knowledge about the company’s current acquisition, current market, they should have the
knowledge of the company’s business. Most importantly they should have experience in various
fields which can be beneficial for the company in longer run. Moreover, they should have values,
ethics. They should have skills like leadership quality so that IDs can guide the people working
in the firm towards growth in the firm.
Most importantly ID should know all about the family dynamics and
organizational abilities and associated leadership approaches which can be beneficial for all the
IDs, shareholder, stakeholder, etc. they should know about the structure of the family business,
its hierarchies, and their decision making. IDs should know about the strength, weakness,
opportunities and threat of the business so as when time comes appropriate decision can be
made. They should know about the internal working in the firm as it is known the decision
making is mostly informal so they should aware of all the situation in the family business.
Such professionals will also profit from intra-personal skills that would enable them
to focus on their role, abilities and intent with the family business. IDs with these qualifications
can enable family firm to improve risk reduction and management system and governance
structurer.

Answer 5:
Personally, I think IDs should be given more power than what they already are given. In my
opinion IDs should be one of those people who works in the family business and not someone
who is external person who has less knowledge about business and the company. By allotting
someone who is from the company provides them with the advantage as they would know about
the functioning of the company and will be capable of adding value to the company. Not only
this but they are already known how to carry out the day to day activities in the business.
However, company can also take external help from the outside environment which can be
beneficial in the organization as know they can make changes according to their wish as IDs are
already aware of the advantages and disadvantages in the company they can work accordingly.
However, following are the advantages of having an ID in family business:
1. ID can bring perspective, vast knowledge and insight, contact and help the business to
prosper and achieve goals. We can say they can bring enrichment of talent to the Pool.
2. ID can bring clarity, balance and bridges to the family business thus will bring corporate
governance.
Family businesses must hope to bring independent personalities on board to discussion and
welcome alternative suggestion. However, they should be accountable, transparent in the board.