Week 4 (pg 16)_Notes - I. II. III. IV. A A A Who is...

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I. A II. A III. A IV. Who is qualified to serve on the Board of Directors? a. Most states require directors to be adults. b. Some states require directors to be state residents or at leaset U.S. citizens. c. A few states require to be shareholders. d. The RMBCA rquires the board to be composed of >or = 1 director. Some states require >or= 3 directors. There is not maximum umber of directors. e. You can increase or decrease the number of directors by amending you bylaws. i. You could do this because the current number of directos is inappropriate. ii. You could also do this to creat the necessary voting majority for a desired action. iii. You cannot shorten the term of any incumbent, however. f. Outside directors are not employees of the compay. i. Institutional inverstors seem to prefer boards with more outside directors. ii. Several stuies have shoen that a supermajority of outside directors is not exactly realted to successful performandce in spit of what many believe. iii. Sox requires publicly traded companies to have outside directors on the audit committee. V. Some studies have demonstrated tht common characteristic of successful. Boards.
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Week 4 (pg 16)_Notes - I. II. III. IV. A A A Who is...

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