Complete the fill-in-the-blank questions below to test your knowledge of the material in chapter 13 of the textbook.
1
South Africa's corporate governance code is arguably the best corporate governance code in the world. It is named after the chair of the Committee on Corporate Governance, Mervyn King, and is known as the King Code. It takes an approach.
This means that a company should not develop its strategies and carry out its operations without considering the wider community including employees, customers, suppliers, etc.
Page reference: 239
2
The Indian Corporate Governance Code is unusual in that some recommendations are and others are not.
The effectiveness of this approach will depend on the approach of both companies and the Stock Exchange.
Page reference: 245
3
The Brazilian Code Corporate Governance recommends the establishment of a Fiscal .
Its purpose is to oversee the actions of the companies' administrative bodies and to give its opinion on certain matters to the owners.
Page reference: 249
4
The South Africa King Code identifies seven characteristics of good corporate governance: discipline, transparency, independence, , responsibility, fairness and social responsibility.
In relation to accountability, decision-makers in the company must be accountable for their decisions and actions, and there should be mechanisms to ensure this accountability.
Page reference: 240
5
In Brazil, many companies have traditionally issued shares as a means of raising capital.
Preferred shares carry a dividend but they do not usually have voting rights except in specific circumstances. Therefore holders of preferred shares are often in a weak position and vulnerable to the actions of controlling shareholders.
