From Dilemmas, Dilemmas: Practical Case Studies for Company Directors by Julie Garland McLellan. Copyright 2009 by the author. Published by Great Governance (www.mclellan.com.au/books.html).
JANE IS AN INDEPENDENT nonexecutive director of a listed chemicals company which was originally family owned and is still managed by family members.
The CEO of the company has purchased luxury assets such as a yacht, a corporate jet and more, ostensibly for entertaining company guests, customers and opinion makers, as well as a staff welfare measure. Jane believes these assets will be used by the CEO for his personal use, including his family, but is sure that records will be created to reflect that the assets will mostly be used for the purported purpose and only a minimal time will be booked as...