BANKING AFFAIRS

Detailed explanation-1: -Managerial accountability to shareholders is fundamental to the integrity of capital markets. Accordingly, corporate governance mechanisms have been established to minimize the risk of fraudulent financial reporting.

Detailed explanation-2: -Responsibility. The board of directors is responsible for looking into corporate matters and managing the company in a way that is in the best interest of the company and shareholders.

Detailed explanation-3: -The primary responsibilities of board directors to shareholders relate to their fiduciary duties, including the duty of care, duty of loyalty and duty of obedience. These duties require board directors to place the best interests of the company ahead of their own.

Detailed explanation-4: -A corporation’s board owes its “fiduciary duties” exclusively to shareholders, meaning that the board, as it makes decisions, is solely accountable to shareholders.