To prevent governance issues like lack of board independence, inadequate disclosure, ineffective risk

management, and inadequate shareholder engagement at XYZ Corporation, the following steps can be
taken:

Strengthen Board Independence: The company should establish a clear framework for board
independence and ensure that board members are appointed based on their expertise, qualifications,
and integrity. Additionally, the board should regularly assess its own performance and effectiveness to
ensure that it operates independently and in the best interest of the company and its stakeholders.

Improve Disclosure: The company should adopt a comprehensive disclosure policy that includes all
material information relevant to investors and other stakeholders. This policy should be periodically
reviewed and updated to reflect changes in the company's operations, financial performance, and
governance practices.

Enhance Risk Management: The company should develop a robust risk management framework that
identifies and evaluates all significant risks facing the organization, including those related to
governance, ethics, and compliance. This framework should also outline risk mitigation strategies and
establish a system of internal controls to monitor and manage risks.

Engage Shareholders: The company should regularly engage with its shareholders to understand their
concerns and priorities. This can be achieved through regular communication, such as annual meetings,
investor calls, and other forums. The company should also establish a shareholder engagement policy
that outlines its approach to shareholder engagement and sets clear expectations for communication
and feedback.

By implementing these steps, XYZ Corporation can enhance its governance practices and strengthen its
reputation as a responsible and accountable organization. This, in turn, can help the company build trust
with its stakeholders and create long-term value for its shareholders.