Question

Each of the following is an example of corporate governance except : a. Adding non-executives to the board of directors b. Properly disclosing financial information C. Ignoring shareholders' rights d. Controlling executives' salaries

Answer 1

C. Ignoring shareholders' rights

Step-by-step explanation:

Corporate governance refers to the way corporate companies are controlled and directed. The board of directors provides corporate governance in a company. Good corporate governance establishes a framework that protects shareholders' rights in the company.

Some of the shareholders' rights include

1. Right to vote

2. Right to transfer ownership

3. Right to dividends

4. Right to inspect corporate documents

The board of directors must ensure fair treatment of all shareholders, including the minority. The board has to put in place mechanisms that address shareholders' concerns and offers redress when their rights are violated.