Board of Director Duties & Responsibilities
Over the last few years the duties and responsibilities of the board of directors have been consistently brought to the forefront of public opinion. The various accounting scandals underscore how important their responsibilities are to shareholders.
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They Provide Life to a Company
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Under the law a corporation is considered to be a separate legal entity. The board of directors acts as the voice and decision makers of the company. They set the policies that will be implemented.
Select Management Positions
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The board of directors determines who will be the executives and managers of the company. They will set salaries and compensation packages.
Reporting to Shareholders
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Shareholders are the owners of the company. The board of directors is responsible in reporting to them the overall amounts of revenues, expenses and other pertinent information on the company.
Provide Assets and Funds
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A responsibility of the board is to ensure that the company is able to continually provide different goods or services to the public. This means that the board must ensure that there are appropriate funds and resources to achieve this objective.
Ensure Policies are being Followed
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Once a policy is in place, it is the board of directors' responsibility to ensure that both management and staff are following the directives that they have.
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