Corporate Governance Essay Example | Topics and Well Written Essays - 2000 words

Corporate Governance - Essay Example Must have the capability and is responsible for individual decision-making Each director must execute calculated and independent judgment in his or her decision making process. Must be able to exercise concern, meticulousness and dexterity In the duties executed by the directors, the directors have the responsibility of exercising significant concern, dexterity and meticulousness. The aspects of ‘significant concern, dexterity and meticulousness’ are weighed according to what is generally expected from a person performing the role of a director. It is also weighed as per the experience, skill and general knowledge of the individual director (Mallin, 2010). Must never accept benefits from third parties. Benefits from third parties can give rise to conflict of interest and make an impact (or affect) on the company. Therefore, Directors must never accept such benefits. Must declare interest in proposed transaction. If a director has a personal interest in the companyâ€℠¢s proposed transaction, then the details of the particular of the interest must be declared to the other directors before the transaction or arrangement takes place. Must act honestly towards the company and must act only within the powers sanctioned to him and use the same only for purposes which would be beneficial to the organisation. Must take charge of all meetings of the Board when a Chairman is not present, and review plans, agendas and information that are sent to the Board for Board meetings and check on the meeting schedules to assure that there is enough time for discussion of all agenda items. Must serve as liaison between the independent Directors and the Chairman of the Board. Must monitor the self evaluations of the Directors in coordination with the Nominating and Corporate Governance Committee. Rights and Responsibilities of the board of directors at the Collective level Primary decision-making body of the company are the board of directors (Hopt & Wymeersch, 1997) . The collective responsibility of all aspects of the company is on the board of directors. The various activities of the company that the board of directors are responsible are: To establish and maintain the company’s motto that can otherwise be categorised as vision, mission, and values. To have full and effective control of the company To establish its structure, strategy, and risk profile by identifying and monitoring key risks and making sure that the company has the necessary control systems to manage risk within permissible levels. To ensure compliance by the company with all laws and regulations and must delegate authority to management, and monitor the execution of the company’s plans – strategic, tactical and operational moves. To responsible and accountable to all the stakeholders of the company which include, shareholder, employees, customers, clients, etc. Be transparent while communicating to the shareholders and explain on the details of resolutio ns that are to be passed at the