Board of Directors | Meaning & Examples - InvestingAnswers
Jan 8, 2021 · Board of Directors vs. CEO. The CEO is the head of a company who is responsible for the business’ daily operations. The CEO, however, reports to the board of directors. The board has the ultimate oversight of the CEO’s activities. Can the Board of Directors Fire a CEO?
Boardroom Definition & Example - InvestingAnswers
Oct 17, 2020 · Directors attend board meetings, usually quarterly, in order to evaluate management performance, tend to major decisions (such as making acquisitions or selling the company), declare dividends, create stock-option policies (including approving grants to key managers) and establish executive compensation packages. These board meetings are held ...
CEO -- Chief Executive Officer -- Definition & Example
Oct 1, 2019 · The CEO informs the board of the company's activities and plans on a regular basis. The CEO often has a seat on the board of directors, but the board can also fire the CEO -- that is, the CEO 'serves at the pleasure of the board.' Good CEOs have skills in a variety of areas, but the CEO's job is not to be an expert in every area of a business.
Corporation Definition & Example - InvestingAnswers
Oct 30, 2020 · The board of directors is elected to make decisions that are in the best interest of the shareholders. 3. A corporation has an unlimited life; that is, corporations don't die or expire unless a) the shareholders decide to intentionally dissolve the corporation or b) a corporation is unable to pay its debts and is forced into bankruptcy .
Corporate Governance Definition & Example - InvestingAnswers
Aug 12, 2020 · The board of directors lays at the heart of the notion of corporate governance -- it has a fiduciary duty to the shareholders. This can be difficult, especially when the vast majority of information boards receive about corporate performance comes from management, but nevertheless, the board is ultimately responsible for the integrity of a ...
SOX -- Sarbanes-Oxley Act -- Definition & Example
Oct 7, 2020 · The Sarbanes-Oxley Act goes beyond requiring corporate boards to adopt codes of ethics. It substantially raises the standards and requirements for directors, officers, auditors, securities analysts, and corporate lawyers. As part of its eye toward reform, the Act also toughened the consequences for financial misconduct.
Hostile Takeover Bid Definition & Example - InvestingAnswers
Oct 1, 2019 · In a hostile takeover bid situation, the target company's board of directors rejects the offer, but the bidder continues to pursue the acquisition. A hostile bidder often makes its bid via a tender offer , which means that the bidder goes right to the shareholders (rather than to the board) and proposes to purchase the target company's stock at ...
Quorum Definition & Example - InvestingAnswers
Oct 1, 2019 · Let's assume Company XYZ has 10 board members. Its bylaws state that at least six board members must attend each board meeting for the board to conduct business. A vacancy on the board does not change the number of directors needed for quorum. Why Does a Quorum Matter? In order to conduct business, a board must have a quorum.
Buyout Definition & Example - InvestingAnswers
Jun 1, 2021 · Negotiations and/or a tender offer ensue, and the board of directors eventually either recommends that the shareholders sell their shares to the purchaser or discourages the shareholders from doing so. Company managers and directors do not always welcome buyout offers, but because the shareholders ultimately decide whether to sell the company ...
Dividend | Examples & Meaning - InvestingAnswers
Apr 27, 2021 · The board of directors also announces the dividend record date. Ex-Dividend Date. After the record date has been determined, the stock exchanges or the National Association of Securities Dealers assign the ex-dividend date. The ex-dividend date lands exactly one trading day before the record date.