Commonsense Corporate Governance Principles include all of these EXCEPT:

A) Truly reciprocal corporate boards are vital to effective governance, so all boards should be beholden to the CEO or management
B) Diverse boards make better decisions, so every board should have members with complimentary and diverse skills, backgrounds, and experiences
C) Every board needs a strong leader who is independent of management
D) Effective governance requires constructive engagement between a company and its shareholders

Question

Commonsense Corporate Governance Principles include all of these EXCEPT:

A) Truly reciprocal corporate boards are vital to effective governance, so all boards should be beholden to the CEO or management
B) Diverse boards make better decisions, so every board should have members with complimentary and diverse skills, backgrounds, and experiences
C) Every board needs a strong leader who is independent of management
D) Effective governance requires constructive engagement between a company and its shareholders

Quizplus · Accepted Answer

The statement "Truly reciprocal corporate boards are vital to effective governance, so all boards should be beholden to the CEO or management" goes against the principle of independence and accountability of the board to shareholders, which is a key element of effective corporate governance. Therefore, option A is not part of the Commonsense Corporate Governance Principles.

Commonsense Corporate Governance Principles Include All of These EXCEPT