Thursday 15 December 2011

Board of Director Duties and Responsibilities

1. CONTROL AND OVERSIGHT OVER MANAGEMENT


  • Select CEO
  • Sanction the CEO's Team
  • Provide CEO with a forum
  • Ensure management competency
  • Evaluate management's performance
  • Set management's salary levels, i/c fringe benefits
  • Managerial integrity - continuous auditing
  • Chart the corporate course
  • Devise and revise policy


2. ADHERENCE TO LEGAL PRESCRIPTIONS


  • Keep update of new laws
  • Ensure entire organization fulfills legal prescriptions
  • Pass bylaws and related resolutions
  • Select new directors
  • Approve capital budgets
  • Authorize borrowing, new stocks issues, bonds etc

3. CONSIDERATION OF STAKEHOLDERS' INTEREST

  • Monitor product quality
  • Ensure employee quality of work life
  • Review labor policy and practices
  • Improve customer climate
  • Keep community relations at the highest level
  • Use influence to better governmental, professional association and educational contacts
  • Maintain good public image

4. ADVANCEMENT OF STOCKHOLDERS' RIGHTS

  • Preserve stockholders' equity
  • Stimulate corporate growth so that the firm will survive and flourish
  • Guard against equity dilution
  • Ensure equitable stockholder through representation
  • Inform stockholders through letters, reports and meetings
  • Declare proper dividends
  • Guarantee corporate survival

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