5 Questions
What is the role of a board of directors in a corporation?
Setting policies for corporate management and oversight
What determines the powers, duties, and responsibilities of a board of directors?
Corporate governance regulations and the organization's constitution and by-laws
What is the primary function of a board of directors?
Representing shareholders' interests
What is the composition of a board of directors?
A panel of elected individuals representing shareholders
What is the governing body responsible for in a corporation?
Setting policies for corporate management
Study Notes
Role and Responsibilities of a Board of Directors
- The board of directors is the governing body responsible for overseeing the management of a corporation.
- The powers, duties, and responsibilities of a board of directors are determined by the corporation's articles of incorporation, bylaws, and applicable laws.
Primary Function
- The primary function of a board of directors is to make strategic decisions and oversee the overall direction of the corporation.
- This includes setting the corporation's mission, vision, and objectives, as well as monitoring and evaluating its performance.
Composition of a Board of Directors
- A board of directors typically consists of a group of individuals elected by the corporation's shareholders.
- The composition of the board may include insider directors (employees or executives of the corporation), outsider directors (independent experts or professionals), and executive directors (CEO or other high-level executives).
- The ideal composition of a board of directors balances expertise, diversity, and independence to ensure effective governance.
Test your knowledge of corporate governance practices and reporting based on the OECD principles. Explore topics such as the rights of shareholders, stakeholder involvement, disclosure and transparency, board responsibilities, and the five key elements of corporate governance. Sharpen your understanding of the role of directors and the equitable treatment of shareholders through this insightful quiz.
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