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16. Which committee is responsible for a company’s code of ethics and conflict of interest policy?
Audit committee.
Governance committee.
Risk committee.
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17. Which of the following is a mechanism to protect the rights of creditors?
Proxy voting.
Regulations to protect the environment.
Collateral to secure a loan.
18. A company wants to incorporate best practices in its corporate governance procedures relating to the company’s compensation committee. The least appropriate step would be to:
include a retired executive from the firm.
link compensation with long-term objectives.
include a representative from a different industry.
19. Which of the following committees is most likely responsible for establishing criteria for appointment of board of directors and search process?
Nominations committee.
Remuneration committee.
20. Which of the following is not a responsibility of the governance committee?
Oversee implementation of the corporate governance code.
Ensure compliance with relevant laws and regulations throughout the company.
Determining factors that constitute director independence.
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