Corporate Governance Quiz

Which of the following is NOT part of the Code of Best Practice in the Cadbury Report? A) The board should put in place policies designed to to align managers’ incentives with stakeholder value. B) The board should meet regularly, retain full and effective control over the company and monitor the executive management. C) It is the board’s duty to present a balanced and understandable assessment of the company’s position.

B

A. “Stakeholder” being the problem.

A.

C

Gonna go with A. Cannot stand the stakeholders.

goodman2011 Wrote: ------------------------------------------------------- A stakeholder interest hard to define

goodman2011 Wrote: ------------------------------------------------------- A

A of course, but query whether Cadbury Report requires manager’s performances to be aligned with shareholder value?

A

A

Answer is A. I thought this was a good general question they could give. I don’t think we need to know the nuances of the Cadbury report, just the main substance of it, i.e. It’s the board’s duty to shareholders to diligently monitor management of the company.

Damnit read it wrong, definitely not stakeholder value…