Indian Polity · Corrective Board Actions
Which corrective board-level action would most appropriately and fundamentally strengthen governance in a company suffering from financial reporting irregularities?
- 1Delegate statutory compliance responsibilities entirely to operational managers
- 2Reduce institutional shareholding to avoid external market pressure
- 3Enhance the proportion of independent directors and strengthen audit committee engagement✓
- 4Increase fixed compensation packages to retain senior executives
Correct answer
Enhance the proportion of independent directors and strengthen audit committee engagement
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