Exam 37: Corporate Governance and the Sarbanes-Oxley Act

In a voting trust, the legal titles to the shares given to the trustee are held in the name of the shareholders.

Which of the following policies helps a corporate officer from being sued for honest mistakes made on behalf of a corporation?

A(n)________ is a member of a board of directors who is not an officer of the corporation.

According to the Sarbanes-Oxley Act, members of the audit committee must be members of the board of directors.

The president of a corporation is an example of a corporate officer.

Which of the following is true about dividends?

________ are a panel of decision makers who are elected by the shareholders.

Which of the following is a federal statute that deals with corporate bribery between U.S.companies and officials of other countries?

Give an account of the director's and corporate officer's duty of care towards the corporation.

________ is a system in which each shareholder votes the number of shares he or she owns on candidates for each of the positions open.

The secret profits obtained by a director or officer cannot be recovered by a corporation.

Which of the following would be seen as a breach of the duty of loyalty by a corporate officer?

What is self-dealing?

The record date, for the declaration of dividends, is set forth in the articles of incorporation.

Proxy solicitation for shareholder votes cannot be made by electronic transmission.

According to the right of first refusal, a selling shareholder must offer to sell his or her shares to the other parties to the agreement before selling them to anyone else.

Which of the following is true of stock dividends?

The corporation can recover any profits made by nonapproved competition by a director.

A director or corporate officer that does not attend board meetings regularly would be in violation of ________.

Public companies are exempt from the requirement for corporations to have audit committees.