Reading #41 - Corp Governance of Listed Companies ... Flashcards
1
Q
define corporate governance
A
“set of internal controls, processes, procedures by which firms are managed”
2
Q
should the chairman of the board be a CEO or former CEO?
A
no - this may impair independent board members to express opinions contrary to mgmt opinion
3
Q
define classified board
A
multiple year terms for board members
4
Q
define audit committee
A
“ensures financial info provided to shareholders in complete, accurate, reliable, relevant and timely”
5
Q
is cumulative voting favorable for shareholders?
A
mostly it is
6
Q
define takeover defenses
A
“provisions that are designed to make a company less attractive to a hostile bidder”
