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 ...
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 .
Ex-Dividend Date | Examples & Meaning - InvestingAnswers
Feb 14, 2021 · The declaration date is the day a company’s board of directors announces the next dividend for shareholders. This announcement sets the dividend payment amount, the ex-dividend date, and the payable date. 2. Ex-Dividend Date
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.
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.
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 ...
Dividend Declaration Date Definition & Example - InvestingAnswers
Oct 7, 2020 · The board of directors thenreviews this information, including Company XYZ’s profits, and declares, via an April 30 press release, a $0.10 dividend per share for the quarter, payable on May 15. In this case, the dividend declaration date is April 30.
Parent Company Definition & Example - InvestingAnswers
Oct 7, 2020 · A parent company has enough voting stock to influence of the board of directors and control the management and operations of the subsidiary company. A parent company may be involved in the ownership and control of the subsidiary company for a variety of reasons.