Company Law - Corporate Governance Flashcards
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| 13626501429 | What is the agency problem? | The divorce between shareholders and directors presents the problem that shareholder don't know whether the company is being run to create shareholder value | 0 | |
| 13626506424 | What can occur as a result of the agency problem? | Conflict of interests | 1 | |
| 13626509981 | Which 4 cases provide the history of Corporate Governance? | 1. Maxwell (1991) 2. Cadbury (1992) 3. Enron Worldcom (2001) 4. Sarbanes-Oxley (2002) | 2 | |
| 13626517404 | What are the factors of "Comply or Explain"? | 1. Transparency 2. Less onerous 3. Specific to each company 4. Less expensive 5. Accountable to members not authorities 6. Difficult to supervise 7. Tick/cross box mentality 8. Flexible | 3 | |
| 13626522415 | What Corporate Governance system is adopted in most EU countries? | Comply or Explain | 4 | |
| 13626526723 | What are the 3 primary code recommendations? | 1. More Non-Executive Directors in the board room 2. Chairman and CEO should be separate people 3. There should be specific committees (e.g. Nomination Committee) | 5 | |
| 13626534951 | What are the 5 main sections of Code Structure? | 1. Leadership 2. Effectiveness 3. Accountability 4. Remuneration 5. Relations with shareholders | 6 | |
| 13626539934 | What are the 7 responsibilities of the Stewardship code? | 1. Manage conflicts of interest 2. Monitor 3. Report 4. Voting 5. Act collectively 6. Escalation 7. Disclosure | 7 |