BCOU Corporate Governance of Business Case Study Questions
Assess the post-merger board structure and discuss the pros and cons before reading the Financial Times article. (10 marks)
Since the Mittal family retain 43.5% of the voting equity can an institutional investor make a significant contribution to the governance of the company? (10 marks)
Please read the Financial Times article under ‘Assessment Tasks and Submission’. Discuss the positive and negative impacts on the effectiveness of the (pre-merger) Mittal Steel board after reading the article and compare its effectiveness with the post-merger board. (10 marks)
Academic rigour (10 marks) , Total 40 marks.
* Must satisfy ribric,
*Details of question attached.
*All questions answered with intext referencing a maximum of 1900 words.
*Additonal resource provided to base this work
This paper will be assessed on knowledge, application, judgement, academic writing- communication style, and referencing.
Quality academic wiriting is imperative. Case Study: Board architecture at Arcelor Mittal
The merger of steel makers Arcelor and Mittal in 2006 produced the world’s largest steel company,
with 330,000 employees and forecast earnings of $15.6 billion. Arcelor had fought a long defensive
battle against the hostile takeover, valued at around $35 billion. Arcelor was incorporated in
Luxembourg and had adopted European governance architecture, with a supervisory board,
including employee representatives, and a management board.
Mittal was a family company with a tradition of growth through acquisition, in which the founding
family still played the dominant role. Arcelor had criticised Mittal for its inadequate controls,
because it had many Mittal family members and few independent directors on its board.
In the merged Arcelor Mittal company, the Mittal family retained 43.5% of the voting equity. The
new board was 18 strong, with chairman Joseph Kinsch, who was previously chairman of Arcelor,
president Lakshmi Mittal, nine independent directors, plus employee representative directors and
nominee directors to reflect the interests of significant shareholders.
The General Management Board was chaired by the CEO Roland Junck, with the son of Lakshmi
Mittal, Aditya Mittal as CFO.
1. Assess the post-merger board structure and discuss the pros and cons before reading the
Financial Times article. (10 marks)
2. Since the Mittal family retain 43.5% of the voting equity can an institutional investor make a
significant contribution to the governance of the company? (10 marks)
3. Please read the Financial Times article under ‘Assessment Tasks and Submission’. Discuss
the positive and negative impacts on the effectiveness of the (pre-merger) Mittal Steel board
after reading the article and compare its effectiveness with the post-merger board. (10
Marks will also be awarded for the academic rigour of the paper (10 marks).
Please answer the three questions individually (i.e. one by one), observing Harvard
referencing style and a clear and logical structure, along with the ability to express yourself
clearly and succinctly.
Your arguments have to be based on concepts and tools discussed in the topics of this unit
and must be supported through direct reference to (academic) literature (recent peerreviewed journals preferred). The report will be assessed based on your ability to develop
arguments supported by relevant and valid sources (please also refer to marking criteria).
You are expected to use at least 10 academic sources (excluding the textbook) to support
your viewpoints. All sources must be properly referenced.
In addition to the academic references, and in case you want or need additional
information about the case, feel free to engage with non-academic literature, i.e. in order to
gain a broader and more detailed understanding of the case study environment, you can
mention and use information and facts from valid newspapers, magazines and/or official
reports. Again, all sources must be properly referenced.
Assignments strictly have to be within the word limit (- / + 10 %)
Where cases of plagiarism are found, students will be sanctioned in accordance with
university policy (see Blackboard for more information)
Additional resource Topics covered
Tricker, Bob (2015). Corporate governance: Principles, policies, and practices, 3rd edn.
Oxford University Press, UK:
-Corporate governance, model, framework in UK
-Corporate governance, model, framework in US
– Corporate governance structure, board members , stakeholders, shareholders, internal and
external auditors, risk management, bylaw, legislation, business law, directors policy, etc
Example ..Corporate governance structure of entity –(LTD)
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