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50904989 Bio-usiness
Board of Directors- The management of the company
Introduction
A company, firm, corporation or an enterprise is a legally established organization whichcomprises of people united to offer services to consumer and make profit. A company could be of a private owner or could be government owned. Most of the companies are created to makemoney gain, which is then used for the growth of the firm. Company has its own assets andliabilities and companys assets are not the property of its shareholders. The persons with whomthe responsibility of working and management of a company lies are called as board of directors.All though share holders own the limited part of the company they cannot run it, part of runningthe company is given to directors. Board of directors is the highest authority in the organization of the company. Board of directors comprises of people who are responsible for the legal actions,signing documents, taking decisions for the companys acquisition or merger with anothercompany, analyzes companys financial report and decides on dividends.
Role of board of director
Ideal roles which a director is expected to play are self responsibility, professional developmentand competence, obligations towards clients and obligations towards society. Toward companythey are expected to look after the employees, safety of the company, laws to be complied andtaxation levied on the company (Startup Hire,2009).Directors study and sanction hierarchy of organizational and controls of the members. They ensurethat management is qualified and capable. They analyze and study the corporate plans andstrategies and suggest necessary changes (Startup Hire, 2009). They analyze and formulate thepolicies of the company. They provide an unbiased view on the working and controls of thecompany. They keep an eye on the companys business plans and the progress. They analyze andimplement corporate policies within the company (Startup Hire,2009). They keep track on theworking of the company on daily basis to ensure that company meets its targets.A company cannot function on its own so it requires people who can act on its behalf such asdirectors. Directors only perform their duties for the company and they dont personally areresponsible for the companys contracts. In adverse situations directors also play the role of employees to get good management(Startup Hire,2009). Directors give orders and see that theyare executed effectively and hence act as officers. They act as trustees of companys finance,infrastructure and power are in their hands and they use powers in the benefit of the companyand not for their own benefit. Directors have the responsibility to look after the day to day affairsof the company as they have the power of being the highest authority in the policy and decisionmaking steps of the company(Startup Hire,2009).
 
50904989 Bio-usiness
Commonly it is found that the board of directors has the primary goal to safeguard the assets of the investors and shareholders and to make certain that they get a good return of theirinvestment. Some directors believe in their employees and feel that they prime responsibility istowards their employees.
C
orporate structure
Number of board of directors depends upon the size of the company. Small companies have 1director in their board while large companies can have 10 or more board of directors.
Types of board of directors
 
y
 
R
otational Directors
y
 
P
ermanent Directors
y
 
Special Directors
y
 
E
xecutive Directors
y
 
Non-executive Directors
Types of corporate officers
y
 
C
EO
or
P
resident
y
 
Chief 
O
perations
O
fficer
y
 
Chief financial officer or Treasurer
y
 
Secretary
S
hareholders
Shareholders are the owners of the company as they have invested in the company and holdsshare of the company. They could be a few in numbers to many. Major actions of the company,whether in transaction of money or change in policy of the company requires the consent of theshareholders (Find law, 2009).
S
tructure of board of director
Some directors are permanent while others are temporary or rotational directors. Shareholderselect the rotational directors.Members of the board include Chairman, C
EO
, Non-executive directors, CS
O
.
 
 
50904989 Bio-usiness
Typical organizational chart of a normal company 
(design intelligence,1998)
 
Responsibilities of board of directors
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