What is the principal function of an annual general meeting in corporate governance?
Correct answer: A. Allowing shareholders to vote on key corporate matters
- A. Allowing shareholders to vote on key corporate matters
- B. Replacing the company's external auditors every year
- C. Managing the company's daily production activities
- D. Setting the salaries of all operational employees
Explanation
An annual general meeting gives shareholders a formal opportunity to vote on matters such as director appointments, financial statements, and auditor selection. Daily operations remain the responsibility of management.
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About Business Ethics and Corporate Governance
Business ethics applies principles such as honesty, fairness, responsibility and transparency to decisions involving employees, customers, investors, competitors and society. Corporate governance covers the board of directors, accountability, disclosure, internal controls, stakeholder interests, agency conflicts, corporate social responsibility, codes of conduct and whistleblowing.
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