WorksheetsOECD's principles of corporate governance
Total questions: 14
Worksheet time: 11mins
Basic shareholder rights should NOT include the rights to:
A. Participate and vote in general shareholder meetings
B. Elect and remove members of the boads
C. Assume responsibility for managing corporate activities
D. Share in the profits of the corporation
Minority shareholders should be protected from abusive actions by:
A.Information disclosure
B. A clearly articulated duty of loyalty by board members to the company and to all shareholders
C. Pre-emptive rights to share issues
D. SUse cumulative voting in electing members of the board
A, B, C, D
Stakeholders of a company have the right to:
A. Participate in managing the company
B. Obtain effective redress for violation of their rights
C. Have access to relevant, sufficient and reliable information on a timely and regular basis
D. A and B
E. B and C
Board's main functions are:
A. Reviewing and guiding corporate strategy
B. Selecting, compensating, monitoring key executives
C. Ensuring the integrity of the corporation's accounting and financial reporting systems
D. All of the answers are right
The equitable treatment of shareholders include:
A. Impediments to cross border voting should be eliminated
B. a.Capital structures and arrangements that enable certain shareholders to obtain a degree of control disproportionate to their equity ownership should be disclosed
C. a.The exercise of ownership rights by all shareholders, including institutional investors, should be facilitated
The rights of stakeholders of a company are established:
A. By law
B. Through mutual agreements
C. None of these
D. Both A and B
.“An annual audit should be conducted by an independent, competent and qualified auditor” is the provision of:
A. Principle 2
B. Principle 3
C. Principle 4
D. Principle 5
Disclosure should include:
A. The financial and operating results of the company
B. The margin of profits of the company
C. The company objectives
D. Major share ownership and voting rights
E. A, C, D
What are not main responsibilities of the BoD
A. Act on a fully informed basis, in good faith, with due diligence and care
B. Treate all shareholders fairly
C. Implement strategies
D. Major share ownership and voting rights
E. Apply high ethical standards
“All shareholders of the same series of a class should be treated equally” does not mean:
a.Within any series of a class, all shares should carry the same rights.
B. Investors should be able to obtain information about the rights attached to all series and classes of shares after they purchase
Any changes in voting right should be subject to approval by those classes of share which are negatively affected.
An annual audti of the company should be conducted by an auditor that is:
A. Dependent
B. Incompetent and unqualified
C. A person who can exercise due professional care
D. On behalf of managers
Board members should act on the best interest of:
A. The management board
B. The shareholders
C. The competitors
D. The company
E. B and D
Shareholders should have the right to be efficiently informed on except:
A. Amendments to the statuses, articles of incorporation
B. Confidential documents
C. The authorization of additional shares
D. Extraordinary transactions
Employees can participate in corporate governance through:
A. Employee representation on board
B. Employee demonstrations
C. Governance processes such as works councils that consideration employee viewpoints in certain key decisions
D. A and C
