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Question
A joint stock company faces criticism for holding back crucial financial information from its minority shareholders while making key decisions. What principle of corporate governance is being violated?
Options
Transparency and accountability
Perpetual succession
Limited liability
Profit-sharing among shareholders
MCQ
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Solution
Transparency and accountability
Explanation:
Corporate governance requires companies to provide accurate and timely information to all shareholders, including minority shareholders, so that they can make educated decisions. Withholding critical financial information goes against the principles of transparency and accountability.
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