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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&
