Several members of the Board of Directors of American Textile Products (ATP) have proposed creating the position of lead director. What circumstances would most likely have initiated this proposal?

Question

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The proposal to create a lead director position is most likely initiated when there is a perceived need for greater oversight of the CEO/chairperson of the Board. This suggests that there may be concerns about the CEO's behavior or actions, which require greater monitoring and accountability. Option A is unlikely to trigger the proposal as the Board's focus on hostile takeovers is not directly related to the need for a lead director. Option B may indicate effective governance, but it does not necessarily call for the creation of a lead director position. Option D is also irrelevant as complying with the NYSE's new rules may lead to changes in corporate governance but does not explicitly imply the creation of a lead director position.

Several Members of the Board of Directors of American Textile