i want to ask on question 4 regarding this statement
"A majority of members of the audit committee should be independent NEDs"
I thought ALL members of the audit committe should be independent NEDs
A
Aruna·
Great
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Lihong·
Hi Sir, thanks for the material!
May i please ask why question 6, why annual evaluation of the board should consider its composition and diversity is right, but ensure the equitable treatment of all shareholders, including minority is not correct, is it because of the wording "ensure" ?
Thanks!
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Kariah·
Ensuring the equitable treatment of all shareholder is a Principle of Corporate Governance promoted by the OECD whereas the annual evaluation of the board should consider its composition and diversity is more of a Principle of the UK Corporate Governance Code. Hope this helps :)
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Askar·
super confusing! reminds me when we cleared CFA ethics stuff when there are so many borderline questions so as to flip a fair coin 50/50. Sigh.
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M Junaid·
The notes are very useful and brief. As these have been shortened, I was wondering that if I learn these notes completely then what would be the chances of passing the exam?
Are these notes and video lectures sufficient alone or do I need to study the complete study text as well?
Thanks.
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Gayathri·
Why some answers are showing marked eventhough i didn't Mark them? But anyway this is a nice procedure thank you.
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Nur·
For question 4, shouldn’t all directors be subject to re-election every three years?
Thank you.
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M Junaid·
Not every 3 years. Its every (1) year.
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Mercy·
Is there an exception to the rule that a chairperson can be on board for more than 9 years considering that he has been objective on decision making throughout all the years of service and that he is believed to still continue being objective, as such can remain on the board for more than 9 years?
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KimTutor·
PLEASE ask technical questions on the forum (where I won't overlook them) rather than here - which is for comment.
According to the Code, to have "served on the board for more than nine years from the date of their first appointment" is a circumstance that is likely to impair/appear to impair a NEDs independence. More than 9 years is not prohibited but it would be necessary to explain how the NEDs independence is maintained - "comply or explain" principle.
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Mercy·
Okay thank you
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Katleho·
Thank you for compiling this chapter in a more comprehensive fashion!
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Nikita·
Hi .. Is this not a UK Corporate governance code that the CEO and Chair of the Board should be 2 separate individuals?
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KimTutor·
If you are referring to Q3 it does not say CEO and chair but FD and CEO.
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Nikita·
Oh yeah.. I got it now.. I guess I read it wrong .. Thank you :)
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John·
May God continue to bless you. This information is rely comprehensive, understandable, main point focus and exam prep material.
"A majority of members of the audit committee should be independent NEDs"
I thought ALL members of the audit committe should be independent NEDs
May i please ask why question 6, why annual evaluation of the board should consider its composition and diversity is right, but ensure the equitable treatment of all shareholders, including minority is not correct, is it because of the wording "ensure" ?
Thanks!
Are these notes and video lectures sufficient alone or do I need to study the complete study text as well?
Thanks.
Thank you.
According to the Code, to have "served on the board for more than nine years from the date of their first appointment" is a circumstance that is likely to impair/appear to impair a NEDs independence. More than 9 years is not prohibited but it would be necessary to explain how the NEDs independence is maintained - "comply or explain" principle.