BY

MUHAMMED RASHAD
ANU A
GROUP 6
 CORPORATE BOARD
 A Corporate board consists of a group of persons
chosen to govern the affairs of a corporation or other
such institutions.
 Oversees activities and strategic planning and decision
making in an organisation.
 Board is elected by shareholders and board hire
management to run the company.
 Duties, powers and responsibilities are governed by
government regulations and organisation’s own
constitution.
Chairman of the board
A corporate board will be headed by an elected
chairman who is concerned with:
 Determining board composition and organisation
 Clarifying board and management responsibilities
 Planning and managing board and board committee
meetings
 Developing effectiveness of board
DUTIES AND RESPONSIBILITIES
1. Trusteeship
 Board act as trustees only .
 Company property should be used for long term gain
of company itself.

2. Formulation of mission, objectives and policies

 Formulated, reviews and reformulated
 Basis for strategy formulation.
3. Designing organisational structure
 Basis: objectives, policies, environmental factors, degree
of competition etc
4. Selection of t0p executives
 Screen and select top executives.
 Strategy implementation.
5.Financial sanctions
 Sanctions finance
 Profit distribution
 Reformulate financial policies
 Review performance
6. Feed, Forward and Feedback
 Collects info and feeds info
 Give feedback to executives
7. Link between company and external environment
 Vital and continuous
 Government and other institutions.
Responsibilities to shareholders
1. Monitoring
 Return on investment
 Dividend policy
2. Select and elect CEO
3. Evaluate performance of CEO
4. Review and approve major corporate objectives
 Budjets
 Propose changes in directing
 Monitor, review and appraise management
 Advise M.D
 Selection of officers
 Compensation of officers
 Selection of legal counsel
 Compliance with laws affecting business
 Monitor company’s performance
General duties of board include:
 Act within powers
 Promote success
 Exercise right judgements
 Avoid conflicts
 Members should exercise reasonable skill, care and
diligence