Corporate Governance Basics
What is "CEO duality"?
CEO is also board chair.
What is insider trading?
Trading on non-public info.
How often should boards meet?
Regularly to discharge their duties.
Name three shareholder rights.
Voting
Dividend entitlement
Access to information
Right to sue
Participating in Meetings
Residual claim
Reporting company wrongdoing.
Whistleblowing
Name one SOX 2002 requirement.
CEO must certify financial reports.
Companies' voluntary societal contributions
corporate social responsibility
Can the CEO join the nomination committee?
No
What is proxy voting?
Voting via representatives.
Large organizations managing funds.
Institutional investors
Who oversees the UK Governance Code?
Financial Reporting Council.
What is ESG?
Environmental, Social, Governance.
Who sets meeting agendas?
Board chair
Benefit of good disclosures?
Investor trust.
Minimum number for decisions.
A quorum
What does "Comply or Explain" mean?
Follow rules or explain why not.
temporarily improving financial reports or portfolios to appear more attractive to investors.
Window dressing
List one board discussion step.
Presentation by the executive
A disciplined process of challenge
Decision on the policy or strategy to be adopted
Full empowerment of the executive to implement
Why is board diversity important?
Better decisions.
Guidelines for professional conduct
Code of ethics
Name three pillar principles of Corporate Governance
Fairness, Accountability, Transparency
List all three stages of money laundering
Placement
Layering
Integration
Name the effect when the new director requires more remuneration than his predecessor does
The legacy effect
A challenge for cross-border voting?
Language barriers
Time Zone Differences
Complex Legal Frameworks
Technology Gaps
Costs
This emerging technology is predicted to revolutionize corporate governance by providing immutable records, secure shareholder voting, and enhanced transparency.
Blockchain