Hugh, the CEO of McBride Financial refuses to give up control because of lack of knowledge “The problem with corporate America and mutual fund America lies in the fact that far too many corporate executives and directors have been placed in positions of great power and authority without an adequate understanding of their fiduciary duties. However, far too many institutional intermediaries have failed to take them to task and insist that the interests of shareowners be served” (Gandossy, R. 2004, Ch. 12, p.124). The Sarbanes- Oxley Act of 2002 demand a report annually and have a minimum of three members of the board to be independent and knowledgeable in finance. The auditing committee is responsible for hiring external auditing firms. The corporate governance situation leads up to the scandals as little use because they are not required by law. Implementing good corporate governance will promote an ethical commitment. In Hugh’s case he is not going to change, he needs to be replaced by someone who is experienced and knowledgeable “McBride does not see the positive corporate governance can have on the business. McBride has plans to join with a more experienced business; Beltway to become shareholders to help with the strategic plan. To gain revenue, long-term success the business must take risk in innovation and creativity” (McBride Correspondence, 2006). Corporate America’s reaction to the governance rating industry has been an aggravation. The problems leading up to the scandals of the 21st century has been toned down by being scrutinized by the government, but this does not mean other companies including McBride cannot have problems. Methodologies can act in accordance with or without change of heart. In these methodologies, the information is tied to a set of metrics, which may not capture the important degree of the policy behaviors and not meeting high standards. One of the top systems is the ISS corporate governance Quotient Rating. This is two numbers...