26 The first duty of directors is to ensure the enterprise A Operates within the law B Generates an acceptable retum for shareholders C. Is managed appropriately on a day-to-day basis D Achieves a sustainable performance 27 If a legal claim against a person does not result in a pecuniary penalty, this means A The case was a criminal prosecution B. The case was a claim to punish a civil wrong doer C The case was a civil claim for compensation D All of the above 28. A corporation should consider use of provisions which enable it to reclaim variable components of remuneration in the event of misstatement or misconduct by directors This suggestion is made by A The Sarbanes-Oxley Act only B. The UK FRC Corporate Governance Code only C. Both the UK FRC Corporate Governance Code and the US Sarbanes-Oxley Act D. Neither the UK FRC Corporate Governance Code nor the US Sarbanes-Oxley Act 29. Which of the following statements is TRUE in relation to the code of conduct of an organisation? A A code of conduct is vital in managing the relationship between an organisation and its employees, but it does not form part of the official corporate governance of an organisation B. The code of conduct should state the rights of employees as well as set out what is expected from the employees C. Contractors are generally not considered in codes of conduct as they are not formally employed by the organisation D. Once complete, the code of conduct is unlikely to require updates as standards of expected behaviour do not decrease over time