Board of Directors is appointed by the shareholders to take care of their best interest and act as representatives of the shareholders. Board of Directors is the true governing body of the company. The authority to set business goals and to regulate business methods wrests with the board of directors. Board of directors is empowered by the shareholders to guide a company's operations and form opinions and strategies for the growth and development of the corporation.
Features:
A board meeting usually runs for a longer duration than the shareholders meeting and the frequency of the meeting is also more as compared to the shareholders meetings. Board meetings touch more comprehensive topics related to the operations of the company and the ways or strategize the implementation of certain decisions or resolutions passed by shareholders. The Board can pass resolutions except those which involve the approval and involvement of the shareholders as per the company bylaws. These meetings and the content can be confidential contrary to the shareholders meeting, where the agenda, minutes and the decisions taken are not confidential.
The Board Meetings Generally Cover the Following Subjects:
*Chalking out strategies of the company
*Put forth the recommendation about the classes of shares and about the number of shares of each class may be offered
*Laying out investment plans for future growth
*Laying out a roadmap on solutions for market expansion, marketing and technology
*Guiding the approval of contracts for purchase, sale, borrowing, lending and other contracts and total value of assets recorded in the accounting book of the company.
*Decisions related to the appointment, termination of the director (general director) and other key executives of a company
*Decisions pertaining to the organizational structure and internal management
*All the decisions related to the establishment of subsidiary companies and the opening of branches
*Preparation and submission of annual final financial reports to the General Meeting of shareholders
*Approving the agenda and documents of the General Meeting of shareholders
*Recommendation of re-organization or dissolution of the company
*Approval of various Bills against loans & other financial liabilities
*Consideration of any new business approval
The Activities Can Be Broadly Summarized Under the Following Headings:
*Description of the issues.
*Decisions to be taken.
*Reviewing previous decisions.
*Discussing all the available options, including discussion of the pros and cons of each.
*Impact of budget and/or staffing.
*Detailed recommendations on various subjects
The board of directors meeting can be conducted even without physical presence of all directors. Virtual Meeting can also be conducted, wherein the participant can be logged on to video conferencing which can validate the presence as good as face to face interaction.
David Gass is President of Business Credit Services, Inc., founder of http://www.SmallBusinessConsulting.com and co-developer of the Corporate Manager Software which manages the records of a Corporation or LLC. For a Free Trial of the software visit http://www.corporateforms.net |
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