2.

Describe the most recent rules on corporate governance for

public firms that could be practiced by Parmalat to ensure the
integrity of management and financial reporting will not be
compromised.

Corporate governance disclosures should be viewed as an opportunity for

companies to show to stakeholders that they have comprehensive and
effective corporate governance procedures. They should provide detailed
information about how they use the procedures. Shareholders and
potential investors want regular, trustworthy, comparable, and integrated
information in order to evaluate managerial stewardship, company
valuation, and ownership structure. Thus, strong corporate governance
transparency can assist attract capital and sustain investor confidence in
the long run. All directors should fulfill their obligations and
responsibilities as fiduciaries in the best interests of the firm at all times.
 
In addition, all directors must act with integrity, set a good example, and
stay current on his responsibilities as a director as well as the company's
behavior, business activities, and progress. To fulfill its obligations in
accomplishing goals and objectives, the board, in collaboration with
management, should foster a good corporate governance culture within
the organization that supports ethical, prudent, and professional behavior.
Also reviews, decides on, and supervises the implementation of
management's plans for the organization. To guarantee that the company's
strategy plan supports long-term value generation and includes initiatives
for economic, environmental, and social factors that support
sustainability.
 
The Chairman's key responsibilities include providing leadership for the
board so that it can effectively carry out its responsibilities, leading the
board in the adoption and implementation of good corporate governance
practices in the company, setting the board agenda and ensuring that
directors receive complete and accurate information in a timely manner,
leading board meetings and discussions, encouraging active participation,
and allowing dissenting views to be expressed.
 
The separation of the Chairman and CEO positions increases
accountability and allows the allocation of tasks between them. In this
regard, no single person may have an impact on the board's debates and
decisions. The Chairman's responsibilities should include guiding the
board's collective oversight of management, while the CEO focuses on
the company's business and day-to-day operations. The board charter
should clearly clarify this distinction. Having the same person serve as
Chairman of the Board and Chairman of the Audit Committee,
Nomination Committee, or Remuneration Committee raises the risk of
self-review and may impair the Chairman's and board's objectivity when
deliberating on the observations and recommendations made by the board
committees.

3. Describe changes in Parmalat’s control system and corporate

governance structure to mitigate the risk of accounting and
business fraud in future years.

Good corporate governance assists the organization in managing risk and

reducing the possibility of corruption. When directors and top
management are not required to follow a clear governance code, scandals
and fraud within a firm are more likely. Governance refers to structures
and procedures that attempt to promote accountability, transparency,
responsiveness, rule of law, stability, equity and inclusivity,
empowerment, and broad-based involvement. Corporate governance
clarifies the allocation of risk management responsibilities within the
organization and outlines how risk management will be applied at each
level. The board must develop lines of communication with management
to fulfill these obligations. The corporate governance structure establishes
the allocation of rights and obligations among the various partners in the
business, as well as the decision-making norms and procedures. The
management board is typically in charge of deciding how the firm will
grow. Transparency, accountability, and security are the three pillars of
corporate governance. All three are vital to the effective operation of a
business and the development of strong professional relationships among
its stakeholders, which would include board directors, managers, workers,
including, most significantly, shareholders.