Introduction to Corporate Governance and Other ESG Considerations

7 questions

1. 1. Which of the following statements is not applicable for Corporate Governance?
   The board and company management must give fair treatment to all shareholders. All shareholders have the right to participate in the company’s governance and must be clearly communicated to about their rights.The company board and its committees must act in co-ordination with the company management as well as address the concerns of the non-shareholder groups that are involved in the company.Processes and controls must govern the day-to-day operations of the company.
2. 2. Which of the following is true of the Dual board structure?
   It appoints committees to undertake specific tasks like auditing and assessing the compensation system.The Supervisory board oversees the actions of the Management board.The Management board can be members of the Committee board as well.
3. 3. Which of these is not a consideration while assessing board independence?
   Has the board hired external consultants before undertaking a strategic decision?Have remuneration packages been assessed by external experts from time to time?Assess if the management structure is dual or unitary
4. 4. In determining shareholder rights, which of the following is true?
   The company permits shareowners to vote their shares by proxy, irrespective of whether they can vote in person or not.No prior approval by shareholders for adoption of the poison pill.It is not necessary that shareholders have voting rights for change of structure of the company.
5. 5. Which of the following criteria need not be employed while assessing Board members?
   Have technical, financial and legal knowledge to serve on the board.Have made their code of ethics public.Serve on multiple boards and bring varied experience to the table.
6. 6. Which of these is not a responsibility of the remuneration committee?
   Provide details of any proposed share issuance or option settlements with repurchased shares from the open market.Disclose any variable remuneration instruments, such as stock options or restricted stock that the board may receive.Provide details to shareowners of their expertise and previous assignments.
7. 7. Which of the following is a concern while taking defensive action in the event of a takeover?
   Does the company have any cross-shareholding arrangements with other companies that may function as a defence against hostile takeover bids from unwanted third partiesAny previous bids that may have occurred 5 years agoCurrent economic environment and particularly industry environment