IN THE NAME OF ALLAH MOST BENEFICIENT AND MERCIFULL

OUTLINE
1. Board of Directors 2. Board of Directors Effectiveness 3. Purpose of a Board 4. Role of Chairman 5. Board Functions 6. Role of Board and Responsibilities 7. Problems with BODs 8. Solutions to overcome the problems

Board of Directors
A body of elected or appointed members Jointly oversee the activities of a company or an organization is called as the " board of directors". B.O.D also called "oversee".

Board of Directors
- Find the expertise you are missing. - Look for board experience. - Do not overlook non-CEO candidates. - Keep your board size manageable. - Choose people who can participate fully. - Divide your board into focused committees.

Purpose of Board
Potentially self-interested managers do not take actions that benefit themselves (personally or professionally) at the expense of shareholders. Stock exchanges and governmental regulations require that companies have a board of directors.

- Boards must also maintain special committees to oversee the publication of financial statements and interface with auditors, to set executive compensation, and to nominate directors to the board.

Role of Chairman

- Chairman is responsible for ensuring the effectiveness and good performance of the Board and each of its members.

Its duties are different and complementary to those of the CEO. To avoid concentration of power at the expense of adequate supervision of Management, the positions of Chairman and CEO should not be held by the same person. It is very important to guarantee the boards overseeing.

Board Functions

To hire and evaluate management. To vote on major operating proposals. To vote on major financial decisions. To offer expert advice to management. To make sure the firms activities and financial condition are accurately reported to its shareholders.

Role of Board And Responsibilities

Determine the organizations internal policy. Select, support and evaluate the executive director. Ensure effective organizational planning. Ensure and manage financial resources. Assess its own performance. Monitor the organizations programs and services

Problems With BODs

Most boards lack an effective selection system. board also must monitor progress but is frequently the last to know about developing problems. Not very qualified, responsible board. Sometime boards chairman is also the firms CEO. Outside board members might have some sort of business or personal tie to the CEO. Significant vested interest in the firm. Sometime directors do not have skills according to their duty. Directors do not guarantee the profit stability or eventual success of their business actions some boards are too large.

Solutions to Overcome Problem

Select an active person. Board play a strong role in the articulation of the companys objectives and in the formulation of corporate strategy. Developing leadership information systems. Board acts as principal to the management all information related to organization.

THANK YOU ANY QUERY ??