The Dodd-Frank 2010 Provides New Regulations to Strengthen Corporate Governance

question 42

Multiple Choice

The Dodd-Frank 2010 provides new regulations to strengthen corporate governance. Which of the following is NOT a regulation under this Act?

• A) At least once every three years, firms must provide shareholders the right to vote on the compensation of the firm's highest paid executives. The results of this vote are binding on the firm's board of directors.
• B) All US Exchanges must require that listed firms have compensation committees made up exclusively of independent board members.
• C) Large continuous shareholders may nominate candidates for the board of directors and the candidates must be included in the firm's proxy statement.
• D) Firms must establish policies to claw back performance pay in the event that an accounting restatement indicates that such payments were not justified.

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Definitions:

Identical Twins

Twins resulting from the splitting of a single fertilized egg, sharing the same genetic material and typically having very similar appearances and biological characteristics.

Totipotent

A term describing a cell or nucleus that contains the complete set of genetic instructions required to direct the normal development of an entire organism. Compare with pluripotent.

Pluripotent

A term describing a stem cell that can divide to give rise to many, but not all, types of cells in an organism. Compare with totipotent.

Embryonic Stem

Embryonic stem cells are undifferentiated cells that can differentiate into various cell types and have the potential for unlimited, or prolonged, self-renewal.