CIMA BA4 · Chapter 6 · Question 8 of 10
Why are board evaluations recommended by corporate governance codes?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) To review the performance of the board, its committees and individual directors and identify improvements
Explanation
Formal and rigorous evaluation of the board, its committees, the chair and individual directors helps identify weaknesses in composition, skills or processes and supports re-election decisions. It has nothing to do with share valuation, voting rights or external audit.
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