Typical Organizational Structure for us Corporations
SHARE HOLDERS
BOARD of DIRECTORS
Chairman
Vice Chairman
Secretary
Treasurer
Various Committees
select
CHIEF EXECUTIVE OFFICER (CEO)
PRESIDENT
Other
Officers
Other
Officers
Other
Officers
Other
Officers
Other
Officers
FOUNDING TEAM
Extensive Reading some functions & responsibilities Board of Directors
The Purpose of a Board of Directors
A company’s board of directors (governing board) helps management develop business plans, policy objectives, and business strategy. A board of directors often selects the chief executive (Chief Executive Officer and/or President) of the business, and then supports this person, reviews their performance ― and may dismiss them. Through regular meetings, the board helps ensure effective organizational planning and sees that company resources are managed effectively. The board of directors also sees that the company meets regulatory requirements that apply to that business. The board of directors also must assess its own performance.
Directors monitor a company’s financial performance and the success of its products, services and strategy. Directors are expected to follow developments that affect the business. They must set aside any potential conflict between their personal or individual business interests to support the well-being of the business which they serve.
The most effective board of directors will be a group of professionals who bring a breadth of skills, experience and diversity to your company. Ideally, members of the board should have backgrounds and contacts that differ from ― but complement — the entrepreneur’s background and that of the other directors. As the company grows and changes, the board of directors also will also need to evolve to meet changing needs and circumstances.
Major Responsibilities of a Board of Directors
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Determine the Organization’s Mission and Purpose.
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Select the Chief Executive Officer (CEO).
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Support the CEO and Review His or Her Performance.
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Ensure Effective Organizational Planning.
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Ensure Adequate Resources.
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Manage Resources Effectively.
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Determine and Monitor the Organization’s Programmes and Services.
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Enhance the Organization's Public Image.
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Serve as a Court of Appeal.
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Assess its Own Performance.
Chairman of the Board of Directors
He is usually elected from full-time members. Often the Managing Director is also Chairman. This term is used to denote a person in charge of functional executives and who is also on the Board.
The position of the General Manager is not the same, as this term strictly means he is only an executive and has no seat on the Board. In practice, most General Managers are also Managing Directors and, for convenience, will be treated hereafter in this way.
It is not considered entirely satisfactory for a Managing Director to be Chairman of the Board as he acts as an executive (a manager) on the one hand, and when appearing on the Board acts as a Director and this may lead to a conflict of interest. If a director is divorced from the duties of Managing Director he can take a more detached view. The German system shows this “separation of powers” by having a separate Supervisory Board, which appoints the actual management.
The Managing Director
He is appointed by and responsible to the Board of Directors and often is also Chairman of the Board. He is the link between the formation of policy and its execution by managers and is responsible to the Board for the effective management of the enterprise, within the framework of policy laid down.
Duties of the Managing Director. The duties of the Managing Director can be summarized as follows:
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He represents the Board of Directors, interprets policy and ensures it is carried out by all members of the company.
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He formulates programmes to attain objectives and establishes a structure of delegated responsibility to ensure effective control of operations.
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He submits statements to the Board and keeps all activities (e.g. design, sales, production, quality, new techniques) of the company under periodical review.
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He sees that staff are content as regards salaries, promotions, etc., and ensures that morale is high.