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NAJULA MOHAMMEDALI3-SEM, MBA
BUSINESS ETHICS- PRESENTATION ON
DUTIES OF CORPORATE
BOARD
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CORPORATE BOARD ?
The board of directors for a
corporation is responsibe for steerin!the corporation thro"!h the ro"!h#aters of its $ission to theshareho%ers& A corporate boar% asohas e!a %"ties an% other %"ties,
spee% o"t in this presentation&
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DUTIES OF A CORPORATE BOARD
The in%i'i%"as #ho are seecte% to beon the boar% of %irectors of acorporation ha'e o'era responsibiit(
for the acti'ities of the corporation& A corporate boar% is not responsibe for
the %a(-to-%a( %ecision-$a)in!* the
%ai( %ecisions are $a%e b( thecorporation+s eec"ti'es an%$ana!ers&
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The boar% acts on behaf of the shareho%ersto $a)e o'era poic( %ecisions an% pro'i%eo'ersi!ht& A corporate boar% has !reat po#eran% aso !reat responsibiit(& Speci.c %"ties
of the boar% of %irectorsan% ofin%i'i%"a boar% $e$bers,co$$ittees, an%o/cers are set b( the corporate b(a#s&
The b(a#s estabish the speci.c %"ties of
the boar% of %irectors an% estabish r"es ofproce%"re for the boar%& 0hie this so"n%s
1"st proce%"ra, the operations of the boar%are )e( to the r"nnin! of the corporation&
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2orporate boar% $e$bers ha'e a
.%"ciar( responsibiit(to care for the .nances an%e!a re"ire$ents of the corporation& The( $"st actin !oo% faith an% #ith a reasonabe %e!ree of care,an% the( $"st not ha'e an( con4icts of interest&
That is, the interests of the co$pan( $"st ta)eprece%ence o'er persona interests of in%i'i%"aboar% $e$bers&
Boar% $e$bers are responsibe for settin! the
$ission of the co$pan( an% ass"rin! that a actionsare reate% to an% a%here to that $ission& The boar%can chan!e the $ission, b"t on( after caref"%eiberation&
http://biztaxlaw.about.com/od/glossaryf/g/fiduciary.htmhttp://biztaxlaw.about.com/od/glossaryf/g/fiduciary.htm -
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2orporate boar%s of %irectors %o notparticipate in %a(-to-%a( %ecision-$a)in!*instea%, the( set o'era poic(, base% on thecorporate $ission an% 'ision, an% the(
eercise an o'ersi!ht f"nction, re'ie#in! theactions of corporate o/cers an% eec"ti'e
At the ann"a $eetin! of the corporation, theboar% anno"nces the ann"a %i'i%en%,
o'ersees eection of corporate boar%$e$bers, eects or appoints o/cers an% )e(eec"ti'es, an% a$en%s the b(a#s, ifnecessar(&
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THAN5 6OU7&