Question

What does your response to the question above tell you about corporate governance at Facebook?

Answer 1

Corporate Governance at Facebook:

Corporate governance is the set of rules and practices followed by organisations to better operate and for the well functioning of the organisations. The company's Board of Directors are the primary people who enforces these set of rules in any organisation.

At Facebook, Board of Directors has adopted these to reflect the strong committment of the board towards CG to enhance the value of the company in future.

These Corporate governance guidelines are described below:

(i). Responsibilities of Board of Directors: It is responsible for the selection and appointment of CEO, Chairperson of the board and the Lead Independent Director of the board

Director is expected to attend regularly meetings of the board and board committees, if any director is not able to attend the meeting, should notify the chairperson of the appropriate committee well in advance.

(ii). Size of the board: Facebook's CG and bylaws provide that the size of the board will be fixed by the resolution of the board it should be reviewed periodically and can be increased or decreased if needed.

(iii). Frequency of Meetings: There should be at least four meetings scheduled every year, means one meeting each quarter and special meetings to be held if need arises.

(iv). Equity Ownership: It has adopted ownership rules that apply to the company's executive officers.

(v). Succession Planning: If we talk about the succession planning the Board is responsible for the succession of CEO and only board may appoint a CEO.

Hence, above discussed are the main topics about the Corporate Governance at Facebook's Inc.