Governance Question standards, question, failed, months, second

sabaruch

CFAI Corp Finance Text Page 249 Q 19.


this question asks where the board of directors failed to meet their governance standards/requirements

In the second vignette paragraph it states that they had a board meeting for the first time in 6 months

The answer to the Q is that the board doesn't meet often enough.

I have looked all over to find why, but the closest thing I have found in the chapter is

""meet frequently enough to adequately perform its duties and meet in extraordinary session as required by clients"


Is there a CFAI guideline i overlooked like maybe quarterly and 6 months is too long or did they fail because they didn't have an extraordinary meeting to "welcome" the new CEO and outline her responsibilities, etc..."?



Edited 1 time(s). Last edit at Thursday, April 29, 2010 at 07:44PM by rolo550.