A corporation must obtain shareholder approval before the company
A) sells off a major portion of its business to another company.
B) opens additional offices.
C) hires or fires a significant number of employees.
D) expands into foreign markets.
Question 2
A public company instituted a clawback policy. What does this mean?
A) The company can require the CEO and CFO to reimburse the company for any bonus or profits they recieved from selling company stock within a year of the release of flawed financials.
B) At least once every three years, companies must take a nonbinding shareholder vote on the compensation of the five highest-paid executives.
C) The company is prohibited from expelling shareholders unless the firm pays a fair price for the minority stock and the expulsion has a legitimate business purpose.
D) The company has decided that the compensation level of its executives is not in the company's best interests, so it reduces all executive pay levels by a certain percentage.
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