Corporate Governance and Regulation

Play an AI-generated podcast conversation about this lesson

What is the term used to describe the rules and procedures that govern the internal management of a corporation?

Business management

Corporate governance (correct)

Articles of incorporation

Corporate regulation

Which type of corporation is covered by the Revised Code of Corporate Governance?

Close corporation

Closely held corporation

Corporation whose equity securities are listed on an exchange market (correct)

Barangay Micro Business Enterprise

Which of the following companies is exempt from the Revised Code of Corporate Governance?

Corporation that sells equity and/or debt securities to the public

Corporation that has assets in excess of P50,000,000

Small and Medium Enterprises (SMEs) (correct)

Corporation that is a grantee of secondary licenses from SEC

How many independent directors must be present in a corporation covered by the Revised Code of Corporate Governance?

At least three independent directors or 1/3 of the board members Signup and view all the answers

What is an additional qualification that may be required of a member of the Board of Directors by the corporation?

Practical understanding of the business of the corporation Signup and view all the answers

What is the primary purpose of the Revised Code of Corporate Governance?

To promote good corporate governance practices Signup and view all the answers

What is a prerequisite for a director of a corporation?

Membership in relevant industry organizations Signup and view all the answers

What is the primary characteristic of the office of a director?

Trust and confidence Signup and view all the answers

What is a key responsibility of a director of a corporation?

Acting in a manner characterized by transparency and fairness Signup and view all the answers

What is a responsibility of a director of a corporation?

Conducting fair business transactions with the corporation Signup and view all the answers

What is not a responsibility of a director of a corporation?

Acting injudiciously and dependent on other directors Signup and view all the answers

What is a key aspect of a director's responsibilities?

Transparency and accountability Signup and view all the answers

What is a ground for the disqualification of a person from holding a corporate office?

Conviction of an offense involving moral turpitude Signup and view all the answers

Who is responsible for monitoring compliance by the corporation with the Revised Code of Corporate Governance and regulatory agencies?

Compliance officer Signup and view all the answers

What is the primary function of the audit committee?

To assist the Board of Directors in the performance of its oversight responsibility Signup and view all the answers

What is the minimum composition of the audit committee of a corporation?

At least three directors who shall preferably have accounting and finance backgrounds Signup and view all the answers

Which of the following is a characteristic of a compliance officer?

Monitors compliance with regulatory agencies Signup and view all the answers

What is the consequence of a conviction by final judgment or order by a court or competent administrative body of an offense involving moral turpitude?

The person may be disqualified from holding a corporate office Signup and view all the answers

Corporate Governance and Regulation

Choose a study mode

Podcast

Questions and Answers