exam 1 - 4a. The functions of the board of directors...

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4a. The functions of the board of directors include: (I) selecting, evaluating, and—where appropriate— dismissing the chief executive officer (CEO); (2) reviewing and approving the corporation's financial objectives and strategy; (3) providing advice and counsel to senior management; (4) selecting and recommending a slate of candidates for the board of directors to shareholders for election; (5) approving dividends and stock splits; and (6) reviewing the adequacy of systems to conform with applicable laws and regulations. I. Selecting a new Chief Executive is board's most important responsibility. This is the most important because based on the text "board's role in CEO succession is critical to effective governance; choose the right CEO, and all subsequent decisions become easier". b) Part I: Pg 77 Robert Monks states: “I have recently argued that most of the observed problems of governance failure arise out of the excessive power lodged in the Chief Executive Officers…” Agreed. This is a huge lesson.
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This note was uploaded on 11/28/2011 for the course BUS 102 taught by Professor Jasso during the Spring '09 term at UC Riverside.

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exam 1 - 4a. The functions of the board of directors...

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