The Different Types of Directors a Company May Have and Their Role Within the Company.

Topics: Corporate governance, Board of directors, Management Pages: 1 (401 words) Published: August 3, 2010
There are few types of directors a company may have. Managing director or chief executive officer is appointed in many companies. He is put in charge of managing the company’s daily business. A managing director may be conferred with any of the powers that the directors can exercise. He also performs a vital role in large companies because of the scale of the company’s business it is usually impractical for the board to actively carry out daily management and so it delegates its management function to the managing director who is accountable to the board. The managing director is responsible for the senior executives employed to manage the company. As part of the managing director’s management role, it is usual that wide customary authority to bind the company is conferred. Another type of director is chair of directors. The chairman is in charge to exercise procedural control over a meeting. It includes nominating who is to speak, dealing with the order of business, putting questions to the meeting, declaring resolutions to be carried or defeated, asking for general business and closing the meeting. The chairman is often given special powers and greater extent than other director for the performance of the board. In listed public companies, this position carries important corporate governance responsibilities. For executive and non-executive directors, they are playing different roles in the company. Executive directors are full-time employees of the company and take part in the daily management of the company’s business. Non-executive directors are not directly involved in the day to day decision making process but have an important role to play in monitoring the activities of the management team headed by the CEO and bringing an independent view and judgment and often an outside pr broad perspective to the board’s deliberations. They also need to consider the interests of the company as a whole and the general body of shareholders. With the approval of other...
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