BU231 Chapter Notes - Chapter 26: Business Judgment Rule, Due Diligence, Liability Insurance
Document Summary
Chapter 26: corporate governance - the internal affairs of corporations. Corporate governance: the rules governing the organization and management of the business and affairs of a corporation in order to meet its internal objectives and external responsibilities. Affairs: the internal arrangements among those responsible for running a corporation - the directors and officers - and its main beneficiaries - the shareholders. The business: the external relations between a corporation and those who deal with it as a business enterprise - its customers, suppliers, creditors, and employees - as well as government regulators and society as a whole. Publicly traded corporations: corporations that issue shares to the public. Public offering: selling shares to the public. Audit committee: a group of directors overseeing the corporate audit and the preparation of the financial statements. Compensation committee: responsible for setting director and officer pay. Nominating committee: responsible for proposing and recruiting new directors.
