Board of Directors: Structure, Mission and Its Functions

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The Board of Directors is the highest governing authority in a professional management structure. It is made up of two tiers of individual members who are elected by the shareholders of the corporation to establish corporate management related policies. These two tiers include individuals chosen from within the company such as manager, CEO or other daily worker of the company. The next tier involves chosen individuals that are outside of the company and considered to be independent. These individuals are also elected to make decisions on behalf of the corporations, more importantly public companies must have a Board of Directors in place. The Board of Directors mission is to set a fair representation of management and interests of shareholders for the corporation. The responsibility of the Corporate Director is to act on behalf of the corporation and make sure he/she is presenting its best interests at all times, participating in regular meetings of the Board of Directors, amending the Corporation’s bylaws or articles of incorporation, acting with the loyalty to the corporation and its members, approving some corporate activities which include contracts and agreements, asset purchases, and the election of new corporate officers. When electing personnel into these positions there is an invisible line that needs to be addressed regarding who will serve as a member on the Board. If you have too many internal representatives for the company serving as Directors, the Board will tend to make decisions more beneficial to management. On the other side, having too many external Directors may mean management can be left out of the decision-making process that in turn, will cause managers to feel alienated and leave, instead of a fai... ... middle of paper ... ... may be more vigorous, being asked to join a nonprofit board is usually a privilege and an opportunity to be involved in something substantial. Works Cited "The Basics of Corporate Structure." Investopedia. Investopedia Staff, 07 Dec. 2013. Web. 07 May 2014. Bayrasli, Elmira. "Building Successful Non-Profit Boards." Forbes. Forbes Magazine, 06 June 2011. Web. 08 May 2014. "Corporate Structure: Directors to Shareholders." Findlaw. N.p., n.d. Web. 01 May 2014. "How Should a Nonprofit Board of Directors Be Structured?" How Should a Nonprofit Board of Directors Be Structured? N.p., n.d. Web. 01 May 2014. "How to Structure Your Board of Directors or Advisory Board." AlleyWatch RSS. N.p., 2014. Web. 08 May 2014. Strategic Finance. N.d. MS. Critical Differences: Profit Vs Non-Profit. Marc J. Epstein and F. Warren McFarlane, Mar. 2011. Web. 07 May 2014.

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