Role of board of directorsCorporate Management

Prepared By

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Manu Melwin JoyAssistant Professor

Ilahia School of Management Studies

Kerala, India.Phone – 9744551114

Mail – manu_melwinjoy@yahoo.com

Role of board of directors

• It acts as the Trustee of Shareholders – The director’s act as representatives of shareholders and work with utmost faith and degree of honesty in protecting long term aims of wealth maximization of company.

Role of board of directors

• Determining the fundamental objectives and policies – The board of directors play vital role in long range planning and set the overall goal of the company within the framework.

Role of board of directors

• Determining the organization structure and selecting the top executives – It is the prerogative of the board to select the CEO and other top level managers.

Role of board of directors

• Approving financial

matters – These financial

matters relate to two

things namely, approval

of budgets and

distribution of the

corporate earnings.

Role of board of directors

• Maintaining adequate

checks and controls – In

the final analysis, the

board of directors is held

responsible for the result

of the company.

Role of board of directors

• Statutory functions –

Directors are to perform

certain legal functions

which are mandatory on

their part.