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LOS g: Discuss the Cadbury Report recommendations for best practice in maintaining an effective board of directors whose interests are aligned with those of shareholders. ffice ffice" />
Q1. A board of directors should have a company secretary, who is responsible for ensuring that the board procedures are followed and that there is compliance with the applicable rules and regulations. With respect to having access to the secretary and/or removing the secretary, the Cadbury Report specifies that:
A) only the chairman of the board should have access to the advice and services of the company secretary, and removal of the company secretary should be a matter for the board as a whole.
B) all directors should have access to the advice and services of the company secretary, and removal of the company secretary should be a matter of the chairman of the board only.
C) all directors should have access to the advice and services of the company secretary, and removal of the company secretary should be a matter for the board as a whole.
Correct answer is C)
With respect to having access to the secretary and removing the secretary, the Cadbury Report (1.6) specifies that all directors should have access to the advice and services of the company secretary, and removal of the company secretary should be a matter for the board as a whole.
Q2. The Cadbury Report for best practice in maintaining an effective board of directors makes a recommendation concerning non-executive directors. It specifies that there should be:
A) a sufficient number so that their views carry weight in the board’s decisions, but no specific number is mentioned.
B) a majority of non-executive directors, and no specific number is mentioned.
C) no more than five, but no fewer than three.
Correct answer is A)
The Cadbury Report (1.3) specifies that the board should include non-executive directors in a sufficient number for their views to carry weight in the board’s decisions, but no specific number is mentioned.
Q3. According to the Cadbury Report concerning the best practices in maintaining a board of directors, the pay of executive directors should be:
A) unrelated to the profits of the company.
B) merit based only.
C) subject to the recommendations of a committee that is made up wholly or mainly of non-executive directors.
Correct answer is C)
The Cadbury Report (3.3) only says that the pay should be subject to the recommendations of a committee that is made up wholly or mainly of non-executive directors.
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发表于 2009-3-10 17:43
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