Title III:Corporate Responsibility

　　·Public Company Audit Committees

　　·Audit Committee ※Financial Expert§

　　·Become a favorite topic for test

　　·Every public company…，if not…

　　Title III:Corporate Responsibility

　　-If the member is a director，independent

　　-Auditor reports to Audit Committee

　　·Forfeiture of Certain Bonuses and Profits by CEOs/CFOs

　　-Differs from Title VIII(Fraud)

　　Board of Directors

　　·Declaration of Distributions

　　·Fiduciary Duties

　　-Right to Pay

　　-Liability for Unlawful Distributions/Dividends

　　-Duty of Loyalty

　　-Corporate Opportunity Doctrine

　　·Indemnification

　　-Generally…except in a shareholder derivative suit

　　(股东派生诉讼)

　　-D&O insurance

　　Officers

　　·Selection and Removal

　　·Authority(Actual / Apparent)

　　·Fiduciary Duties and Indemnification

　　·May also Serve as Directors

　　¨Good corporate governance-majority of the board should be independent

　　·Not required to be Shareholders

　　Sarbanes-Oxley Act 2002

　　·Regulation includes：

　　-Title I/Title II/Title III/Title IV/Title VIII

　　BEC only covers

　　-Corporate Responsibility(Title III)

　　-Enhanced Financial Disclosures(Title IV)

　　-Fraud(Title VIII)

　　Originally only for public companies，then become best practices for all companies

　　Sarbanes-Oxley Act 2002

　　·Background for Sarbanes-Oxley Act 2002

　　·Caused by a series of frauds and scandals：

　　Enron，Tyco，WorldCom，etc

　　-Named after Senator Sarbanes and Rep.Oxley

　　-Enacted on July 30，2002

　　-11 titles for the Act

　　·Corporate Responsibility(Title III)

　　·Enhanced Financial Disclosures(Title IV)

　　·Fraud(Title VIII)

　　How to Study BEC

　　· What the instructor should do?

　　· Coverage：Content/Problems solving skills/Simulation

　　· Lecture：Foreword，Details，Summary & Class exercises

　　· Test-oriented，coupled with extended knowledge & practices

　　· 比书本有所提高，要融会贯通(BEC 前后内容 & 与其它三科相关内容)

　　· What the students should do?

　　· Attend class regularly

　　· Preview class notes，textbook & try all class questions(including communication)by yourself

　　· At least 3 times for textbook review

　　· At least 3 times for problem solving

　　Chapter 1：Corporate Governance & Operations Mgmt(Performance mgmt & Cost measurement)

　　Corporate governance

　　Operations management：Performance management and impact of measures on behavior

　　Operations management：Cost measurement methods and techniques

　　Corporate Governance

　　Structures in Corporate Governance

　　Sarbanes-Oxley Act 2002

　　Internal Controls

　　Enterprise Risk Management

　　Structures in Corporate Governance