Which of the following is least likely to be considered a “best practice” regarding corporate governance?
A) |
Use of a third party to tabulate votes and retain voting records. | |
B) |
A code of ethics that is audited and improved periodically. | |
C) |
Board members are limited to a six-year term. | |
Anything beyond 2- or 3-year term limits on board membership has the potential to restrict the ability for shareholders to change the composition of the board if its members are not acting in the shareholders’ best interest. |