A board of directors' oversight responsibilities for its company's business affairs do not include evaluating management's performance, approving the hiring of executives and approving executive compensation plans; instead, such responsibilities are for the shareholders to assume at either regular or special shareholder meetings.

Question

Quizplus · Accepted Answer

This statement is incorrect. The board of directors' oversight responsibilities do include evaluating management's performance, approving the hiring of executives and approving executive compensation plans. However, ultimate decision-making authority for these matters rests with the shareholders.

A Board of Directors' Oversight Responsibilities for Its Company's Business