Yolanda,a ballroom dance instructor,was recently asked to be a director of ABC Company which is publicly traded.She is very honored and excited.Her friend,Joe,asked her if she had any experience in accounting,business,or SEC requirements.Yolanda told him no,but that the president of ABC had assured her that the only responsibility of a director was acting as a figurehead because the officers took care of all detailed corporate business.Yolanda says that she is accepting the position because it will get her exposure in the community and perhaps increase her dance clientele.Is Yolanda correct regarding her responsibilities,and why or why not?
A) Yes, Yolanda is correct that the primary job of a director is to serve as a figurehead.
B) Yolanda is correct that the primary job of an outside bank director is to serve as a figurehead, but that is not true of inside directors.
C) Yolanda is not entirely correct, but she has no affirmative responsibility to ensure the accuracy of any reports because that is entirely the responsibility of officers of the corporation.
D) Yolanda is incorrect, and the SEC emphasizes the responsibility of directors to ensure the accuracy and completeness of public company filings with the SEC.

Question

Quizplus · Accepted Answer

Yolanda is incorrect. According to the SEC, directors have a crucial role in overseeing the management of a company and ensuring the accuracy and completeness of public company filings. Directors cannot simply act as figureheads and delegate all responsibilities to officers of the corporation. Therefore, Yolanda must be aware of her legal obligations and responsibilities as a director of a publicly traded company.

Yolanda,a Ballroom Dance Instructor,was Recently Asked to Be a Director