CFAI Corp Finance Text Page 249 Q 19. this question asks where the board of directors failed to meet their governance standards/requirements In the second vignette paragraph it states that they had a board meeting for the first time in 6 months The answer to the Q is that the board doesn’t meet often enough. I have looked all over to find why, but the closest thing I have found in the chapter is ““meet frequently enough to adequately perform its duties and meet in extraordinary session as required by clients” Is there a CFAI guideline i overlooked like maybe quarterly and 6 months is too long or did they fail because they didn’t have an extraordinary meeting to “welcome” the new CEO and outline her responsibilities, etc…”?
I am not sure what the rule of thumb is. At all of the banks I examine, board meetings are held on a monthly basis.
I think its recommended that the board meet at least quarterly