According to Mallor, Barnes, Bowers, & Langvardt (2010) “modern corporation law emerged only in the last 200 years, ancestors of the modern corporation existed in the times of Hammurabi, ancient Greece, and the Roman Empire. As early as 1248 in France, privileges of incorporation were given to mercantile ventures to encourage investment for the benefit of society. In England, the corporate form was used extensively before the 16th century. In the late 18th century, general incorporation statutes emerged in the United States” (p. 1009). Verizon Communications Inc. has 13 Board of Directors, 1 CEO, 8 Executive Vice Presidents, 2 Presidents, and 5 Senior Vice Presidents. “Verizon Communications Inc., based in New York City and incorporated in Delaware, was formed on June 30, 2000, with the merger of Bell Atlantic Corp. and GTE Corp. Verizon began trading on the New York Stock Exchange (NYSE) under the VZ symbol on Monday, July 3, 2000.” Verizon Communications Inc. is a publicly held Corporation. In this paper I will discuss the corporate roles and duties of a corporation. I will also discuss the differences of a publicly held and Closed corporation. Finally, I will discuss which type of corporation I prefer. A Review of Corporate Roles and Duties The Role of the Board of Directors The corporation’s business is carried out by its management, under the direction of the Board of Directors. The Board, and each committee of the Board, has complete access to management. Also, the Board and committee member’s has access to independent advisors as each considers necessary or appropriate. Mallor, Barnes, Bowers, & Langvardt (2010) state that the Board of Directors also, issues shares, Adopts articles of merger or sha... ... middle of paper ... ...osition within the company therefore; I do not think one is better than the other. Works Cited The Allbusiness Web site provides answers and articles about corporations (http://www.allbusiness.com Retrieved May 22, 2011 Mallor, J., Barnes, A.J., Bowers, T., & Langvardt, A.W. (2010). Business law: The ethical, global, and e-commerce environment (14th ed.). New York: McGraw-Hill Spadaccini, M. (2005, June 7). What is a "close corporation"?. Entrepreneur Magazine's Ultimate Book on Forming Corporations, LLCs, Sole Proprietorships and Partnerships., Retrieved from http://www.entrepreneur.com/startingabusiness/ startupbasics/business structure/article78032.html, Retrieved May 22, 2011 The Verizon Communication’s Web site provides answers to information about the corporation (http://investor.verizon.com/profile/index.aspx) Retrieved May 23, 2011
Ralph Nader, Mark Green and Joel Seligman, in an excerpt from Taming the Giant Corporation (1976, found in Honest Work by Ciulla, Martin and Solomon), take the current role of the company board of directors and suggest changes that should be made to make the board to be efficient. They claim the current makeup of the board does not necessarily do justice to the company because “in nearly every large American business…there exists a management autocracy” (Nader, Green and Seligman, 1976, p.570). The main resolution they present is to make the board more democratic with the betterment of the company as its first priority. Currently the board no longer oversees operations, or elects top company executives and they are no longer involved in the business operations to the extent they should be. Nadar, Green and Seligman argue that that all of these things need to be changed. For a corporation so large to be successful there must be separation of powers just as there is in any current government system ( p.571). They claim this is the only and best way to success (Nader, Green and Seligman, 1976, p.570-571).
Perhaps no other company has benefited more from this deregulation than the company which is the focus of this essay – Clear Channel Communications, Inc (CC). The Telecommunications Act and the actions of the FCC paved the way for the rise of this radio industry behemoth. In 1995, the company owned 43 radio stations nationwide. By 2002, it owned 1,239, making it the largest radio company in th...
Years later, the Telecommunication Act of 1996 triggered dramatic changes in the competitive landscape. SBC Communications Inc. established itself as a global communications provider by acquiring Pacific Telesis Group and becoming the new AT&T. The merger of AT& T and BellSouth, along with the ownership consolidation of Cingular Wireless and YELLOWPAGES.COM, will speed convergence, competition and continued innovation in the communications and entertainment industry, creating new solutions for consumers and businesses and positioned to lead the industry in one of its most signifi...
Verizon Communications was created on June 30th, 2000 by Bell Atlantic Corporation and GTE Corporation in one of the largest mergers in U.S. business history. Now, Verizon is a global technology company that is delivering digital technology to millions of customers daily worldwide. The "Verizon" brand was launched on April 3rd, 2000 and operations as Verizon Wireless started on April 4th. In 2003, Verizon began trading on the New York Stock Exchange and trading on NASDAQ on March 10, 2010. In 2004, Verizon Communications was added to the Dow Jones Industrial Average. Verizon has shown growth through acquisitions. The larger acquisitions were MCI Inc. in 2006, Alltel Corp. in 2009 and AOL Inc, in 2015 and these have made Verizon a leader in wireless technologies.
It is stated that Verizon Communications Inc is a holding company that is one of the world’s leading provider of communications, information and entertainment products and services to consumer, businesses and governmental agencies with a presence around the world. They have wireless services (utilizing the largest 4G LTE technology) and wireline services (utilizing local and long distance voice services, data, broadband video, networking solutions, data center and cloud technology. In the report is recorded the investments within the business which they control, investments that they do not control but have the right to exercise the significant influence over are accounted for using the equity method. For investments with no control, they
The corporate governance within Ben & Jerry’s can be identified to use the two-tier management system as their board of directors is independent from the management (Benjerry.com, 2015). However, it can be argued that the board of directors from Unilever also act as board of directors for Ben & Jerry’s when it comes to financial and economic decisions, as well as the right to fire or hire the CEO at any given time. Ben & Jerry`s board of directors has the power to protect the brand, changes in product standards, introduction of new products and marketing decisions (Edmondson, 2014:
The year is 1952 and a young John Rigas purchased a cable company for a mere $300 in Coudersport, Pennsylvania with high hopes of building the company into a successful family owned and operated business (AICPA, 2005, para. 3); a business that would remain unparallel to the rest of its competition. In the late 1990s his dreams came to fruition; John Rigas, along with a few close family members and investors, purchased Century Communications for $5.2 billion and merged the companies together becoming the 6th largest cable company serving more than 5.6 million subscribers (AICPA, 2005, para. 4). Ensuring that the majority of Adelphia’s voting stock and control of the board remained in the hands of f...
Corporate gorverance as a system are directed and controlld by companies. Initially, their board of directors should take responsible for the gorverance of companies, which include setting strategic aims of companies , guarantee an effective leadership, supervising the proformance of business management and reporting on it to shareholders. The board's action should comply with the law, regulations and shareholders. In addition, the shareholders also play an important role in gorverance and they have right to decide who can be employed as the companies' directors and auditors to provide good governance structure for them. Therefore, corporate goverance can be regarded as what the board of a company does and how it sets the values of the company.
“Only about half (53%) of employees trust their organization’s senior leaders – the people who set the tone for organizational culture and need to inspire high-performance and commitment. In contrast, three in four (75%) of employees trust their immediate managers” (BlessingWhite, 2008, p. 2). Senior leaders have the difficult task of aligning organizational culture and ethics and it has been determined that it is impossible to demonstrate trustworthiness without a personal relationship. This finding is consistent among all generations in the workplace, throughout the different business lines, and at every level. Employee engagement is dependent on the manager-employee relationship. This is important as BlessingWhite (2008) stated that bad managers are the third most common reason for leaving, behind lack of career growth and actually disliking the job (p. 2). Contributing employee are employees who trust their managers. For leaders to be effective, they need to know what engagement means, they have to experience engagement, and they need to lead engagement. “They need to be able to help their team members believe in the value of full engagement and inspire them to pursue it on a personal level” (BlessingWhite, 2008, p. 21).
This particular statute allows for corporations and such to obtain several, but not all, constitutional rights as any person or persons. In particularly own property, sue and be sued under criminal and civil law, enter contests. Moreover, because corporations and such are considerate as “person”, business has the legal rights for its debts and damages. On the contrary, persons who are employed by a particular association are liable for their own misconduct and law-breaking while acting on behalf of a corporation. In addition, corporation has rights for its own actions, has rights such as: limited free speech and to advertise their product ("The Rights of Corporations," 2009). Likewise, businesses have the responsibility to elect a CEO, provide continuity; increase profits, social responsibilities, and manages recourses effectively (“Functions & Responsibilities of a Corporation").
In an atmosphere where the number one priority is to make as much money as possible, many question rather or not corporate responsibility is possible. Corporate responsibility represents “a corporation’s social and environmental obligations to its constituencies and greater society (Argenti 2013).” In a profit driven environment, there are several factors that can influence or encourage corporations to also consider greater society in the course of their decision making and subsequently in their priorities as well. The process in which corporations make these decision or the deterring elements that show corporations effect on the community that it serves or the community surrounding it, is a viable realm of analysis in the discussion of corporate responsibility. An article perfectly explicates the Corporate responsibility as,
Firstly, the report will introduce the company and give an outline of the current operations, with focus on their current position in the market, and discuss the main competition faced in a global market. Secondly, focus will lie on the external forces and their influences on the company’s operations, along with discussing the strategic opportunities in order to overcome any facing competition. Finally, the report will include recommendations for the future of Vodafone and how they can become a market leader.
Organizations that only have top management as the board members are more susceptible to accounting malpractices. Members of the board should preferably own shares in the company to ensure diligence when it comes to the interests of the company. Apart from the Board of Governors, there should also be an audit committee in place to oversee the financial dealings of the bank. Members of the board and the audit committee should have basic financial knowledge. Some of the members should also be experts in finances so that they can detect any anomaly that may take place in terms of financial reporting. An overhaul of the regulatory framework is required to empower authorities to intervene immediately, and make improvements. New technology is required. Manual antiquated processes should be eliminated because this causes greater human error and poor
The board of directors has both executive and non executive directors. Executive directors have both executive and board duties to perform while non executive directors have only board responsibilities. Therefore both types of directors vary in the responsibilities and authority they have in the company affairs. Thus the non executive directors devote very little time to company affairs ( only attend board meetings, committee meetings of which they are members or sometimes pay a visit to the company premises for getting knowledge of how things are done).
The need for corporate governance arose in the second industrial revolution during which there was change in the corporate structures as the United States and Europe started large enterprises such as the railways, the telegraph and mining which required salaried managers to manage the corporations instead of the owners/ shareholders.