Another central feature of the board of directors is the question of whether the CEO is also the chairman of the board. When the CEO is also the chairman this is often referred to as “CEO duality”. In the US the CEO is often the chairman of the board. Studies have shown that the board in most cases
Although stock implies ownership, few equity investors expect to play a role in running the companies whose shares they buy. Such firms are widely held, and few stockholders have large enough blocks of stock to influence management decisions. In small business, of course, owners usually run their companies.
Boards of directors are elected by the stockholders of the corporation to represent their interest. Board of directors relies on the board to oversee the operation of their company to protect their interest.
Common stockholders are the basic owners of a corporation, but few stockholders of large corporations take an active role in management. Instead, they elect the corporation’s board of directors to represent their interests. Board members seldom get involved in the day-to-day management of the company. They establish the basic mission and goals of the corporation and appoint
* The control of the corporation is managed by an elected board of directors. The officers in the company normally have to be approved by the board of directors before they are offered a position to lead the company.
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”.
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.
In the corporate form of ownership, the shareholders are the owners of the firm. The shareholders elect the directors of the corporation, who in turn appoint the firm’s management. This separation of ownership from control in the corporate form of organization is what causes agency problems to exist. Management may act in its own or someone else’s best interests, rather than those of the shareholders. If such events
The ownership structure for Bombardier not only gives the Bombardier family majority ownership of shares, but also superior voting power. Given that Class A shares have ten votes each and Class B shares have one vote each, the Bombardier family is deemed to control 54.35% of all the voting rights of both classes of common shares. This gives the Bombardier family ownership and control over the whole corporation. The non-controlling shareholders have insignificant voting power over the Bombardier family which may make it unfavourable to invest in the company.
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.
After the company has been approved the new shareholders have to elect a board of directors whom are going to run the company on their behalf. The directors are been elected to do the day to day running of a company, and because of their expertise and skills. After the broad of directors are elected of the shareholders they take over they responsible of the running of the company. Each share equals one vote, but in most cases small numbers of shares have little to say as in most cases large investors who hold the majority of shares have the power and saying in the company. The number of shares in one company, which equals 100% differ from company to company, and the price per share differ as well. There are two different types of companies: private limited companies and public limited companies. Shares cannot be traded without the approval of the board of directors in a private limited company. The shares are also only sold to friends or family member with a prior agreement and not to the general public. Normally a private limited company has the letters “Ltd” after its name, On the other hand a public limited company is selling their stocks on the Stock Market to the general public. Public limited companies sometimes carry the letters “PLC” after its name. The value of a company is all shares added together and have to equal 100% of the shares. This is how the value of a company constantly is change, as a result
Managers and shareholders are the utmost contributors of these conflicts, hence affecting the entire structural organization of a company, its managerial system and eventually to the company's societal responsibility. A corporation is well organized with stipulated division of responsibilities among the arms of the organizational structure, shareholders, directors, managers and corporate officers. However, conflicts between managers in most firms and shareholders have brought about agency problems. Shares and their trade have seen many companies rise to big investments. Shareholders keep the companies running