Roles Of Different Types Of Directors

997 Words4 Pages
Business and Corporation Law Assignment

The roles of different types of directors “Non-Executives serve no real purpose” - Comment

By Louis Prateek Rajan 44141572

Directors: The person who is responsible for the conduct of business activities of an enterprise is usually referred to as the “Director” of a company. They are also known as the “Managers” of the entity and are elected by the shareholders during the members meeting. Once elected, the list of directors need to be lodged with ASIC. Often the director is seen as the face of the company and is synonymous with its brand value.The main role of the director is two-fold:
a) To exercise control over how a company functions and
b) Must conduct his activities in good faith and in the best interests of the company.

Apart from ensuring that the strategies formulated at the top level are carried out and communicated effectively to the other levels of management, the “Managers” have to make sure that:
a) Profit maximization objective – is of top priority.
b) A balance is struck between the stakeholders’ interest and companies’ obligations.
In short, the director “Links the Company with Outside Stakeholders”.

Types of Directors and their respective roles: Directors are basically classified on the basis of their role and functions in the organization. Some of the types of directors involved in business are:

De facto Directors:
These directors:
a) Are
Open Document