Which of the Following Statements Is Not True of the Method

question 30

Multiple Choice

Which of the following statements is not true of the method of appointment and removal of directors?

• A)The first directors of a public company are named in the application to register the company lodged with ASIC.
• B)In a listed company new directors are appointed by shareholders.
• C)Directors can appoint new directors if the constitution allows it.
• D)Directors must step down after five years.

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Definitions:

Board Responsibility

The obligation of a board of directors to oversee the strategic direction and governance of an organization, ensuring it fulfills its mission while being accountable to its stakeholders.

Obedience

The act of following the commands or guidance of an authority figure or institution.

Chief Executive Officer

The highest-ranking executive in a company or organization, responsible for making major corporate decisions, managing the overall operations, and being the main point of communication between the board of directors and corporate operations.

Outside Consulting Organization

An external entity providing expert advice, solutions, and strategies to other organizations, typically in management, technology, or specific industry sectors.