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11 Cards in this Set
- Front
- Back
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Corporate governance
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It defines the appropriate rights, roles and responsibilities of management
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Good corporate governance
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-Protect shareholders interest
- act lawfully and ethically in dealing with shareholders - Board acts independently from management - Financial are report to shareholders in timely manner |
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Duty of the board
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Act in shareholders' long term interests
Majority of board of directors are independent members The board meet regularly outside the presence of management Chairman of board - CEO or former CEO |
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Independent Board
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Decisions are not controlled or biased by management of firm
No relationship with subsidiaries, former emplyees individual groups |
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Board member
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Independent, experience and resources
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Audit Committee
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Committee ensure financial provided is complete, accurate, and timely
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Remuneration/Compensation Committee
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Independent board that sets executive compensation
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Nominations Committee
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Handles recruiting new board members.
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Confidential Voting
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Confidential votes may trigger biased voting
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Cumulative voting
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Minority shareholder group, can serve own interests through cumulative voting
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Shareowner-sponsored board
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If shareholders have the power to put forth an independent board nominee
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