CFA Institute Sustainable-Investing Exam - Topic 2 Question 2 Discussion

Actual exam question for CFA Institute's Sustainable-Investing exam

Question #: 2
Topic #: 2

[All Sustainable-Investing Questions]

In which of the following countries does the governance code require at least two independent non-executive directors?

AJapan

BThe UK

CSouth Africa

Show Suggested Answer

Suggested Answer: A

by Sherita at Aug 14, 2025, 09:09 AM

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Barabara

6 months ago

South Africa has similar rules too!

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Bambi

7 months ago

Wait, are you sure about Japan? I thought it was different.

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Sabra

7 months ago

The UK requires at least two independent non-executive directors.

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Bernadine

7 months ago

I didn't know this was a requirement in the UK!

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Leah

7 months ago

Totally agree, it's a solid governance practice!

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Tyra

8 months ago

I believe the UK is the one that requires at least two independent non-executive directors, but I could be mixing it up with South Africa.

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Olive

8 months ago

I’m a bit confused; I thought Japan had some rules about independent directors, but I can't recall the specifics.

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Alba

8 months ago

I practiced a question similar to this, and I feel like South Africa had a strong emphasis on independent directors too.

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Laurena

8 months ago

I think I remember that the UK has specific requirements for independent directors, but I'm not sure if it's two or more.

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Estrella

8 months ago

I'm confident the answer is B. The UK is known for having strong requirements around board independence, so that's my pick.

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Sharmaine

9 months ago

I'm a bit unsure about this one. I'll have to review my notes on international corporate governance standards to make the best guess.

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Willow

9 months ago

Okay, I've got this. The UK corporate governance code requires at least two independent non-executive directors, so I'll go with B.

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Dominga

9 months ago

Hmm, I'm not too familiar with the governance codes in these specific countries. I'll have to think through what I know about board composition rules.

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Arlette

9 months ago

This seems like a straightforward corporate governance question. I'll need to recall the key requirements for independent directors in different countries.

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Launa

10 months ago

I think it's the UK.

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Antonio

11 months ago

The UK, of course! They're all about that corporate governance.

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