Question

The Lending Club removed CEO Renaud Laplanche in 2016. Hans Morris, the company executive chairman, lauded him, saying his entrepreneurial spirit was critical to the success of the firm. But he also signaled the board was removing Mr. Laplanche because he had failed to build a strong control system and culture, stating that as a public company that provides a financial service, Lending Club must meet the industry high standards of transparency and disclosure. This kind of dismissal signals what message to the public

Answer 1

Answer: The board of directors are active and engaged.

Explanation:

The board of directors is a group which has a fiduciary duty in ensuring that the company is run consistently well with long term interests of the owners, or the shareholders of a corporation and they also act as an intermediary between shareholders and management.

In the above scenario, the dismissal signals that the board of directors are active and engaged. The dismissal shows that Lending Club meets the industry high standards of disclosure and transparency.