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CASE ANALYSIResearch in Motion

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BACKGROUND ABOUT THCASE The case looks at the oar! str"ct"re o# Research in Motion $RIM%

the 'roe o# the Ontario Sec"rities Co((ission $OSC% an! E)chan*e Co((ission $SEC% into the co('an+,s stock o'tion'ractices in late -../&

Instit"tional in0estors1 s'eci2call+ North3est an! Ethical In0est$NEI%1 3ere concerne! ao"t RIM,s lea!ershi' an! oar! str"ct"re

 This 3as not eca"se o# non6co('liance 3ith re*"lations or aerrors "t eca"se o# the #ollo3in* reasons7 Drastic #all o# the co('an+,s share 'rice Uns"ccess#"l la"nch o# its talet 4la+ook8 an! Stron* co('etition in the s(art'hone "siness

In a!!ition #or( the serio"s strate*ic an! o'erational iss"es1 inin0estors1 (ore s'eci2call+ NEI1 9"estione! the !o(inance o# eon RIM,s oar! an! aske! #or a s'lit o# the Chair an! Co6CEO roles

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BACKGROUND ABOUT THCASE In or!er to 're0ent a sho3!o3n 3ith sharehol!ers at the Ann"a

Meetin* $AGM% on :"l+ 5-1 -.551 RIM (a!e an a*ree(ent 3iestalish ;a co((ittee o# in!e'en!ent !irectors to st"!+ str"ct"re1 the (erits o# a lea! !irector 0ers"s a chair an! the necessit+< #or the co('an+,s co6CEOs to hol! =si*ni2cant, titles

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CASE OB:ECTI?ES As a res"lt o# st"!+in* the case1 st"!ents sho"l! e ale to7

Assess the costs an! ene2ts o# s(all 0s& lar*e oar!s an! *o0ernanao"t oar! si@e8

Anal+@e the 'ros an! cons o# the a''oint(ent o# a non6e)ec"ti0e oaan e)ec"ti0e oar! chair8

Distin*"ish the role o# a lea! !irector8

Co('rehen! the i('ortance o# an in!e'en!ent oar!8 I!enti#+ the roles an! res'onsiilities o# oar! !irectors $e)'ertise an!

an!

E0al"ate the reasonaleness o# oar! co((ittee str"ct"re&

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CASE OB:ECTI?ES To st"!+ RIM,s *o0ernance str"ct"re to learn ao"t *o0ernance '

a '"licl+ liste! co('an+ an! to i!enti#+ ele(ents o# *oo! *o'ractice&