Detail the respective duties of people critical to the corporate process: directors of corporations, officers of corporations and shareholders of corporations.© BrainMass Inc. brainmass.com November 30, 2021, 4:19 am ad1c9bdddf
In the field of corporate governance, the duties of the directors in a corporation are the central part to operate a big corporate entity. Understanding the roles of officers and stakeholders within an organization is critical because they control the organization and its operation.
The main role the directors are to implement control and management in the organization to run all the functions in a smooth manner (McNamara, 2008). The main responsibilities and duties of the directors in an organization are to define the policies and procedures of the organization, of that the middle and lower management can follow these regulations to achieve the task and fulfill the goals of the organization (Directors' Roles within a Corporation, 2009).
They have power to select the agents and officer who works on the behalf of organization in the industry. They declare dividend and work on the major events that can affects the performance of the company (McNamara, 2008). In the public corporations the responsibilities of the directors are more critical in comparison to closely held corporations. In the public corporation it is difficult for the directors to change the rules rather than closely held companies (Micklethwait & Wooldridge, 2003). Apart from this some duties of the directors is acquiring enough resources for the operations of organization, selection of CEO, etc. (McNamara, 2008).
Duties of Officers of Corporations
Officers in the organization are elected by the directors and the main duty of officers in both public and closely held organization is to manage the day-to-day operations of the organization (Micklethwait & Wooldridge, 2003). The CEO is the responsible to handle major contracts, legal documents, and stock certificates of the corporations. CEO is the main person who ...