You are on page 1of 1

The chairman is the highest office of an organized group such as a board, committee, or deliberative

assembly. The person holding the office is typically elected or appointed by the members of the group.
The chairman presides over meetings of the assembled group and conducts its business in an orderly
fashion. When the group is not in session, the officer's duties often include acting as its head, its
representative to the outside world and its spokesperson.
A Chairman is selected by a company's board to lead the board of directors, preside over meetings, and
lead the board to consensus from the disparate points of view of its members. The chairman is the
presiding director over the other directors on the board and is expected to be fair, a good listener, and a
good communicator. In public companies, the role of the chairman of the board is distinct from that of the
company's CEO or managing director. This point has more recently been brought into focus after
corporate governance shortcomings were observed in companies where the two roles are combined. It is
believed that the separation of functions within the board of directors or in the structure of the supervisory
board and management board would facilitate control over the workings of the company and increase the
accountability of the CEO or chairman of the management board. In an attempt to inject transparency into
the relationship between executive management and the board of directors as well as between
management and the market or shareholders, the UK Cadbury Report was published in 1992. Its
recommendations have been adopted to a greater or lesser extent by some countries within the European
Union and the United States, as well as by the World Bank.
Chairman of the Board types
In the case of companies and similarly-organized bodies, there are generally two types of chairmen, nonexecutive and executive.
Non-executive
A non-executive Chairman of the Board is and does the following: A part-time officeholder who sits on
and chairs the main board of a company Provides support and advice to a CEO This position usually
entails fulfilling a similar function on a number of additional board committees, as well as being a
political figurehead of the Company. Executive An executive Chairman of the Board is and does the
following: A full-time officeholder who typically leads the board and also takes a hands-on role in the
company's day-to-day management.
Helps the CEO to oversee all the operational aspects involved in running the company, which include
project planning and development delivery, retail and leasing, sales, market research and many other
areas within their extensive scope. Has overall responsibility for the company which involves
engineering and controlling the company's current growth in and future expansion into international
markets. In addition, oversees all projects' development activities and related businesses of the
company, with the intention of generating financial returns for the shareholders and driving sustainable
development. The chairman often sets the style of leadership of the board which in turn filters down
through the organization.