Responsibilities of the Board of Directors of a Limited Company
Board of Directors is a committee that responsible for all activities of the company. Different segments of the company are controlled by each of the directors. Individually, directors, have no power make the decisions about the company. The board of directors selects their functions and responsibilities in the meeting of the board of directors.
The legal responsibility of the board of directors is to see that the company is managed in the best interests of its stockholders.
(a) Establish corporate objectives: the board of directors is supposed to establish corporate objectives and develop broad policies.
(b) Review management’s action: the board is supposed to review management’s actions to determine whether or not it is achieving objectives in a way is in the best interests of stockholders.
(c) Growing public concern: There is a growing public concern which is shared by some directors themselves, is no longer meeting the requirement of changing society.
(d) Stockholder interest: directors monitor more than just the economic performance of the companies; they direct long run stockholder interest through primary concern with profit.
A variety of suggestions have emerged to make boards of directors stronger and make them function better in the terns of a changing concept of Stockholder Interest.