Both Type of the Board of Directors Have Their Own Advantages and Disadvantages

Question #4: Which is likely to have the greatest positive impact on the company and why?

This helps in maintaining a friendly relation with the members later on. This in turn, helps in the motivation of employees which result in the firm’s success.

Apart from the company president,which is the head,the company still has a Board of Directors with the chairman of the board.And also an advisory board,elected by the workers are generally valued by the employees.

3. Has the board established a nomination committee which consists of a majority of independent directors? The board should be structured in such a way that it ensures an appropriate mix of skills and expertise to govern the company and enhance its performance role. The committee should be structured in such a way that a majority of independent directors can enhance the board’s

Selecting board members with varying backgrounds will complement the skills of others of the group. Professionals such as attorneys and CPA’s provide diversity to board configuration. In addition, the board of directors is often responsible for reviewing financial statements and contracts. Legal opinions and an accountant’s insight and suggestions assist management in making decisions relating to their occupation.

In large corporations the success or failure of the company is the responsibility of the board of directors. According to Richard DeGeorge, “The members of the board are responsible to the shareholders for the selection of honest, effective managers, and especially for the selection for the CEO and of the president of the corporation.” (p. 202). The board members have a moral responsibility to ensure the corporation is run honestly, in respect to its major policies, and to ensure the interests of the shareholders are satisfied. The next responsibility within a corporation is the responsibility management has to its board of directors. DeGeorge writes, “It must inform the board of its actions, the decisions it makes or the decisions to be made, the financial condition of the firm, its successes and failures, and the like.” (p. 202). The management of the corporation is morally obligated to

Although each member has specific role, they all are strategically aligned. The CEO role is to manage the entire company. With this function, the CEO is much involved in succession planning for the company. The board of director’s role is assist with any decision making for the company. Mlot and Sorensen (2013) mentions that five board members provide practical advice to HR organizations regarding succession planning. Human resource role is recruiting and developing talent. With this function, human resource plays a critical role in selecting and developing talent for succession

It is important for board members to have some insight into the day-to-day operations of the organization since they technically are volunteers and donors. They dedicate time to governing the organization and financially contribute their own money and/or encourage others to do so. However, board members are generally busy people who do not have the time for all of the minute details. They want the overview to make the necessary decisions on behalf of the organization and not be overwhelmed with details and the normal tasks that the staff would handle.

A Board of directors, in my opinion, is a body of one person or a group of people who should oversee the performance of a organization. The goal of Board of Directors is to protect the organization 's assets and to use source to

Joshua Kennon (2007), stated that “The board of directors is the highest governing authority within the management structure at any publicly traded company and is usually made up of the directors who are elected for a specific number of years by the shareholders”. According to Wikipedia,” A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization”.

The Directors and officers shall perform the duties enjoined on them by law and the by-laws of the corporation. They act as agents or representatives of the Corporation in carrying out its rights and obligations provided by law. Directors who directed the affairs of the Corporation in bad faith, gross negligence, and those involving a conflict of interest with their duty to the Corporation shall be liable to the Corporation, its stockholders & other persons. The Board of Directors are not justified to purchase the stocks.

Boards members rarely have an understanding of key enterprise strategies or risks. They have no clear sense of their companies’ prospects 5 to 10 years down the road. They have limited time, lack of industry specific expertise and different definitions of success that prevent them from successfully performing

Why join a Board of Directors – There are many reasons to join a board of directors beyond the

b. The board of directors is to be supported by an in house team to monitor and coach the resolutions.

The Board of the Company consists of 11 (eleven) Independent Directors and 2 (two) Inside Directors. They have expertise in the areas of business, finance, law, audit and public companies.