State how it is intended to help to address the risk

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Question - Below is a summary of the SEC corporate governance requirements of companies publicly-listed in the stock exchange. For each requirement, state how it is intended to help to address the risk of fraud in publicly traded organizations.

-Boards need to consist of at least 3 independent directors or 1/3 of the board which is higher.

-Boards need to hold regular executive sessions of independent directors without management present.

-Boards must have a / corporate governance committee composed at least 3 of independent directors.

-The corporate governance committee must have a written charter that addresses the committee's purpose and responsibilities, and there must be annual performance evaluation of the committee.

-Boards must have an audit committee with a minimum of three independent members.

-The audit committee must have a written charter that addresses the committee's purpose and responsibilities, and the committee must produce an audit committee report; there must also be an annual performance evaluation of the committee.

Reference no: EM132991265

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