Due to the conflict of interest, in publicly held companies, directors of a corporation may not own shares of stock in the company.

Name: Due to the conflict of interest, in publicly held companies, directors of a corporation may not own shares of stock in the company.
Brand: Quizplus
Rating: 4.8 (58 reviews)

Question

Quizplus · Accepted Answer

Directors of a corporation are allowed to own shares of stock in a publicly held company, but they must disclose their ownership and recuse themselves from any related decision-making processes to avoid potential conflicts of interest.

Due to the Conflict of Interest, in Publicly Held Companies