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▪ Perform relevant analysis (financial and non-financial) related to investment decision-making.

▪ Make decision based on the analysis.

Jade Sdn. Bhd. (JADE), since its establishment, has been mainly involved in providing services in facility management and cleaning services. Apart from these main services, JADE was also involved in hospitality management, travel and tours, and agribusiness. The current involvements were already varied, and the Board was thinking of furthering the diversification activity to generate more revenues. As the Chief Executive Officer (CEO) of JADE, Ahmad was required to conduct the necessary analysis and provide his recommendation to the Board whether JADE should proceed with the purchase of Tulip Garden Hotel (TULIP). He had one month to act before proposing his recommendation to the Board.

Undergraduate and Postgraduate

Teaching notes are available for educators only.

CSS 1: Accounting and Finance.

The main objectives of this case are to provide an opportunity for case users to understand the organisational governance framework in a farmers' association and how to build an effective organisational board. More specifically, the teaching objectives of this case are as follows: to provide an overview of the functions of different types of governance structures in a farmers' association. To understand the importance of good governance practices in a farmers' association and for its stakeholders. To relate democratic theory, stakeholder theory, agency theory and stewardship theory with the governance practices of a farmers' association. To critically evaluate the board governance in a farmers' association and recommend measures to enhance the practices.

The teaching case presents the governance practices in a farmers' association in Malaysia, ZIX-PPK and the various governance challenges that emerged in the PPK subsequent to the appointment of politically affiliated directors. Prior to 2019, ZIX-PPK was an outstanding PPK under the helm of the General Manager, Khadijah. The PPK had continually been recognised as an exceptional and excellent PPK by the Farmers' Organisation Authority and the Muda Agricultural Development Authority. However, the Arahan Pendaftar Bil 1/2019 required changes to the governance structures of ZIX-PPK, with five new directors being appointed by the minister. The appointment threatened the independence and autonomy of ZIX-PPK and affected the dynamic of the board of directors. Khadijah had to search for measures that could improve the board governance in ZIX-PPK. The names, in this case, had been altered but the details were based on an actual event. The data were collected through interviews with key players and with reference to the minutes and other documentation of ZIX-PPK.

The teaching case can be used by students in higher education institutions at both undergraduate and postgraduate levels. The case may also be relevant for training purposes to farmers' associations and any non-profit organisations.

CSS 1: Accounting and Finance.

Teaching notes are available for educators only.