- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 3. Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits
- Subject 2. Corporate Governance Mechanisms
CFA Practice Question
Shareholder engagement is typically initiated by ______.
B. management and the board
C. regulators
A. shareholders
B. management and the board
C. regulators
Correct Answer: B
Shareholder engagement is a distributed responsibility. Companies should make efforts to engage with their shareholders on a wide range of topics, including executive compensation, strategy, risk management, corporate governance, and other topics falling outside the usual financial and strategic conversations.
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