Nooo, just when i thought i was through all the boring stuff, i’m hit with corporate governance. Anyone know to what extend the CFA test this material, i see that it was introduced in 2006, Hmmm pity i didn’t take the exam sooner.
focus on concepts (principal-agent problem, independence of the board, etc) and don’t worry about details as much.
The Board should have the authority to decide whether to hire external consultants, whom should be hired, and how they are to be compensated, etc without having to receive approval from management. Where would the board members obtain the funds needed to compensate the external consultants?
from the company
If you think about whats BEST for the shareholders. Then the questions are simple. In june i dont even think i was asked more than 2 questions on the matter, and they were very obvious. Not really much CFAI can pull out of here. When i studied however, i just memorized that first page that outlined everything. To be honest, anything after that is sooooo boring.