Internal Audit Evaluation and Planning Quiz

An independent director can be disqualified for being absent in more than 50% of all regular and special meetings during a 12-month period, unless due to illness, death in the immediate family, or serious accident.

Exceeding two percent (2%) beneficial equity ownership in the corporation or its subsidiaries disqualifies an independent director from being elected.

Being a senior officer of the covered company disqualifies one from being an independent director if there has been a change in the controlling ownership after retirement.

Owning more than two percent (2%) of the outstanding shares of a subsidiary disqualifies an individual from being an independent director.

A nominee of a director of a related company is eligible to be an independent director.

Having been a consultant of the covered company 10 years before election as director disqualifies one from being an independent director.

Affiliation with a non-profit organization that receives no funding from the covered company or its related companies disqualifies an individual from being an independent director.

Exceeding two percent (2%) beneficial equity ownership in the corporation or its subsidiaries does not disqualify an independent director if the limit is later complied with.

Being a former consultant of the covered company within 10 years before election does not disqualify one from being an independent director.

If an individual is affiliated with a non-profit organization that receives no funding from the covered company or its related companies, it does not disqualify them from being an independent director.