Under SEC Rules,which of the Following Is True

question 14

Multiple Choice

Under SEC rules,which of the following is true?

• A)Shareholders may be subject to personal liability for paying excessive executive compensation.
• B)Publicly held corporations must disclose executive compensation information to shareholders, but not the public.
• C)Board of director members can sue a corporation for excessive executive compensation.
• D)Board of director members may be subject to personal liability for paying excessive executive compensation.

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Definitions:

Section 11

A specific section in various legal documents or statutes that might encompass different regulations or requirements depending on the context.

1933 Securities Act

A U.S. law that regulates the offer and sale of securities to protect investors from deceit, misrepresentations, and other fraud.

Privity

A legal concept indicating a close, mutual, or successive relationship to the same right of property or the power to enforce a promise or warranty.

Due Diligence

The investigation or exercise of care that a reasonable business or person is normally expected to take before entering into an agreement or contract.