The Toronto Stock Exchange (TSE/TSX) requires that members of a board of directors for a listed company have
A) members experienced in business.
B) two independent members.
C) membership that represents the diversity of Canada.
D) only stockholders as members.

Question

Quizplus · Accepted Answer

The TSE/TSX requires that at least two members of a board of directors for a listed company be independent members. This means that they should not have any past or current association with the company or its management, and should not have any personal or financial interest in the company. This is to ensure that the board is objective in its decision-making and is not unduly influenced by the company's management or major shareholders. While it is important to have members experienced in business, or those who represent the diversity of Canada, these are not mandatory requirements by the TSE/TSX. Having only stockholders as members would not be desirable as it might result in a conflict of interest.

The Toronto Stock Exchange (TSE/TSX) Requires That Members of a Board