The Key Requirements of the Cadbury Code of Best Practice

question 61

Multiple Choice

The key requirements of the Cadbury Code of Best Practice state that

• A)the compensation, nominating, and audit committees to be entirely composed of independent directors.
• B)the positions of CEO and chairman of the board should not reside in the same individual.
• C)listed companies to have boards of directors with a majority of independents.
• D)none of the above

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Definitions:

Breach of Contract

An occurrence when one party does not honor a commitment or fails to perform any term of a contract without a legitimate legal excuse.

Undue Influence

Pressure from a dominant, trusted person that makes it impossible for a party to bargain the terms of a contract freely.

Negotiable Instruments

Substitutes for money that bestow unique benefits; vehicles for conveniently transferring funds or advancing credit.

Bills of Exchange Act

Legislation that regulates the creation and the use of bills of exchange, a type of negotiable instrument.