BU231 Chapter Notes - Chapter 26: Fiduciary, Due Diligence, Financial Statement

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12 Apr 2016
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The organizaion and management of the business that help achieve its internal objecives and external responsibiliies. Public companies have to meet some requirements and standards such as: majority of directors should be independent, ceo shouldn"t also be chair of the board. The board of directors: governing body of corp, manages its business and afairs. The oicers: highly ranked members (president, vp, controller, ceo) Role supervise and manage the business and afairs: issue shares, declare dividends, adopt bylaws for the corp, call meeings of shareholders, delegate responsibiliies. Must be appointed then elected, re-elected, or replaced on a regular basis. Responsible for the day to day hands on management of the business. Exercise the skill and diligence that a reasonably prudent person would in the same circumstances. Fiduciary duies: honest + good faith, loyalty, integrity, and trust. Duty of care, diligence and skill: owes not to be negligent, behavior is compared to the average director in same circumstances.

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