Board Of Directors: Structure, Mission And Its Functions

1545 words - 7 pages

The Board of Directors is the highest governing authority in a professional management structure. It is made up of two tiers of individual members who are elected by the shareholders of the corporation to establish corporate management related policies. These two tiers include individuals chosen from within the company such as manager, CEO or other daily worker of the company. The next tier involves chosen individuals that are outside of the company and considered to be independent. These individuals are also elected to make decisions on behalf of the corporations, more importantly public companies must have a Board of Directors in place. The Board of Directors mission is to set a fair representation of management and interests of shareholders for the corporation. The responsibility of the Corporate Director is to act on behalf of the corporation and make sure he/she is presenting its best interests at all times, participating in regular meetings of the Board of Directors, amending the Corporation’s bylaws or articles of incorporation, acting with the loyalty to the corporation and its members, approving some corporate activities which include contracts and agreements, asset purchases, and the election of new corporate officers. When electing personnel into these positions there is an invisible line that needs to be addressed regarding who will serve as a member on the Board. If you have too many internal representatives for the company serving as Directors, the Board will tend to make decisions more beneficial to management. On the other side, having too many external Directors may mean management can be left out of the decision-making process that in turn, will cause managers to feel alienated and leave, instead of a fair representation of both sides.
The structure of the organization is vital to its success. There are some recommendations about electing members like making equity owners of the company’s percentage equal to their position on the board. For example, if an equity owner of 100% should have a 100% say in the board meetings and may not want anyone else on the decision making board and simply rely on his/her own management for guidance and counsel. Another recommendation is to consider if you choose to go with an external investor. It is important that you have a third party who does not have a biased opinion involved in the process and who can assist in handling disputes within the board. This part may be overlooked in the beginning but is an important part to consider beforehand. The source also recommended not choosing a passive member to be on the Board. You want this member to be fully involved with the process at all times and doesn’t just show up to meetings and take up a valued seat. The number of directors chosen to serve on the board usually depend on the size of the business, but the amount is normally stated on the corporate bylaws. But for voting purposes the number of members elected should always be odd so...

Find Another Essay On Board of Directors: Structure, Mission and Its Functions

The Functions of the Workplace Safety and Insurance Board

636 words - 3 pages The Workplace Safety and Insurance Board (WSIB) is a customer-driven organization that is focused on finding faster, easier, and more effective and efficient ways to deliver their services in all of their customer interactions. With a focus on improving services to customers, the WSIB has introduced E-services to make it quicker and easier for workers, employers, and healthcare professionals to report claims, and enable employers to access their

Title - Personal Insight Paper for Oragnizational Leadership, how as working adults we react in groups, commitees, and board of directors

948 words - 4 pages role. I gladly accepted my new responsibilities and carefully examined all expenses and income. I asked accounting to compare my database entries with their postings. My numbers had to be consistent with what our CFO would report to the board of directors. I took my new role very seriously, accomplished my goals, and delegated responsibility to appropriate staff. The new role I played came easily, not only because Ihave done it before, but

The Functions and Structure of the Legendary Telegraph

2364 words - 10 pages closer to one another. Not only was it when it was used during its golden age, but it also brought the Morse code with it which is still useful in today’s world. With my fascination with the telegraph, I was curious as to how the process of electromagnetism worked in the process of operating it. As I spent my time relearning about the physics and structure that went into working the telegraph, I was able to comprehend its concept of electromagnetism

Functions and Diversity of Family Structure in the UK

1935 words - 8 pages . Primary socialisation of children Parsons and Murdock both agree that the family structure is essential for the maintenance of society, and that the family is universal because any other institution cannot perform its functions. The Marxist views on the family totally differ from those of the functionalists. Barrett and McIntosh (1991) suggest that the ‘nuclear family’ is presented as ideal for society to aspire

Investigation into the functions, structure and reactions of enzymes

1027 words - 4 pages substrate will increase so the rate will too. Above the optimum temperature, and the enzymes are denatured. Bonds holding the structure together will be broken and the active site loses its shape and will no longer work. pH - as with temperature, enzymes have an optimum pH. If the pH changes much from the optimum, the chemical nature of the amino acids can change. This may result in a change in the bonds and so the tertiary structure may break

Ziggurats and Pyramids: An Analysis of Physical Structure and Cultural Functions

769 words - 4 pages exciting facts on their creation and fundamental purpose. The pyramids of ancient Egypt and the ziggurats of the Akkadian society have fundamental function and appearance similarities, but have very distinct, specific designs and purposes for which they were created. The fundamental purpose for the construction of these ancient structures was based in religion. The outside appearance of the basic structure of both the pyramid and ziggurat are similar

The nervous system and its bodily functions

1988 words - 8 pages The nervous system is the most complex part of the body, as they govern our thoughts, feelings, and bodily functions. It is an important factor in science because it can lead to new discoveries for cures or diseases. The studies of the nervous system helped lower death rates from heart disease, stroke, accidents, etc. The nervous system is a network of neurons (nerve cells) that that sends information to the brain to be analyzed. Neurons live

The Reproductive System: Its Functions And Disorders

2421 words - 10 pages The Reproductive System Its Functions And Disorders. The reproductive system is the part of the human body that is necessary to continue the human existent. Reproduction in humans normally would begin by a male and female having sexual intercourse with each other. Men and women are both unique in the way their bodies and are formed and developed. Men and women both go through the most changes during their adolescent years when they begin

The Structure of the ANS System and the Effects it Has Shown to Have on Physiological and Behavioral Functions

709 words - 3 pages The Structure of the ANS System and the Effects it Has Shown to Have on Physiological and Behavioral Functions The ANS is a purely motor system, meaning that it transmits impulses out of the CNS to various motor or effect or organs of the body. These include the smooth muscle of the blood vessels and the gastro intestinal system, heart muscle, and several glands such as the pancreas, the adrenal medulla and the salivary glands. The ANS

Gospel of John and Mission

2825 words - 11 pages GOSPEL OF JOHN AND MISSION “Christianity Begins with the starling statement that the center of human reality is love” the central issue here is what love is, how the gospel of John brings to the Johnnie community? And how do we understand the Word “Love” and its reality. Obviously John portrays love as synonymous to Jesus the Son of God Before making some discussions on the gospel we believed to be written by the disciple who loved by Jesus

Research Paper Inventory Management System of Best Buy and its functions in Retail

2141 words - 9 pages application. Associates have a slightly limited access compared to managers, with just enough functions to assist in the sales transaction. In order for stores to maintain healthy inventory integrity and achieve its revenue goals, there are two crucial ways RSS helps management in achieve this. RSS measures rate of sale for a specific product SKU (stock keeping unit). The store then gets replenished depending on the amount of units sold on the

Similar Essays

Board Of Directors' Role In The Us And Uk

1637 words - 7 pages . The board of directors’ duty to the company in the UK is summed up in the Company Act 2006 as, “duty to promote the success of the company for the benefit of its members as a whole (Companies Act).” This was interpreted as having to make decisions that are in the interest not only of the shareholders but the employees, suppliers, customers, and the environment as well. Because of this regulation in the UK, board of directors there have much

Dow Chemical Board Of Directors Decision Making

1137 words - 5 pages The Dow Chemical Company was founded in 1897 by Herbert H. Dow with the intent to manufacture and sell bleach. For over 100 years Dow has been at the forefront of technology, with success in research, innovation and manufacturing. For the next 30 years the company expanded into agricultural chemicals, food preservatives and gasoline additives. In 1935 Dow began developing one its most famous commodities: plastics. The 1960s were a benchmark

Ford Motor Company Code Of Business Conduct And Ethics For Members Of The Board Of Directors

657 words - 3 pages The Board of Directors for The Ford Motor Company has implemented an additional Code of Business Conduct and Ethics for their directors. It was created in order to help them access ethical risk factors, provide guidance and support when dealing with ethical issues, and uphold the integrity of the company (Ford Motor Company pg. 1). With these guiding principles set forth, all directors must comply and adhere to the codes, as well as promptly

Ceo And Head Of The Audit Committee Of The Board Of Directors

1135 words - 5 pages , Control environment is the base for all other constituents of control; it is an effective system of control which provides the discipline and structure necessary to operate, and it is designed in an organization that strives to achieve its strategic objectives. Action Step Develop an ethical culture that defines the way members of the organization must act. Management need to emphasize the importance of a commitment to competence, which requires two