The board of directors of a company has three main functions: monitoring, guiding and controlling. It has legal right to ratify and monitor managerial initiatives, evaluate the performance of management and reward or penalize that performance(Fama and Jensen, 1983). Board meeting is the main platform for directors to collect information and make decisions. Lipton and Lorsch(1992) suggest that the biggest challenge directors face today, is the lack of time to carry out their duties. Board meeting time(frequency) is an important factor in improving the effectiveness of a board(Conger et.al., 1998). An opposing view is that board meetings are not necessarily useful because of the fact that almost always the chief executive officer set the …show more content…
Brick and Chidambaran (2010) find a positive association between board meetings and firm value and they accentuate the theory that the increase in meeting frequency represents a rise in the level of monitoring, leading to better performance of the firm. In the backdrop of conflicting views on the board meetings, the importance of board meeting frequency and its impact on board effectiveness or firm performance, does not seem to be clear. In conclusion, it can be said that, in one hand it has associated costs including managerial time, travel expenses and director's sitting fees, etc and at the same time it has its benefits like more time for directors to confer, set strategy and monitor …show more content…
Security Exchange Board of India, constituted different committees from time to time and their recommendations are accepted and followed by companies. One of such committee was formed under the chairmanship of Kumar Mangalam Birla and it's recommendation was to have the audit committee of atleast three non-executive directors and at least two of them should be independent directors and the committee should also be headed by one of the independent directora. Independence of audit committee has been emphasised by Cadbury committee of UK and many other committees, across the world. It has also been found by researchers that firms with independent audit committees have fewer instances of corporate fraud(Uzun et al., 2004; Persons, 2005). The report of task force formed in 2009 by CII, under the chairmanship of Naresh Chandras recommended for more responsibility and accountability of Audit committee. It says that all the members of the audit committee should have good financial knowledge and all the appointments of auditors should be scrutinised by the audit
Case Study #1 Andrew Gonzalez Saint Leo University MGT 417 Case Study #1 The Meridian water pump case is about a small company that produces small water pumps. There was a meeting held within the department managers that pertained to making medium size pumps for the next 6months. Arguments were recorded between the marketing and sales manager, production manager, HR manager and finance manager. It seems to me that all were pointing the finger at one another on why things couldn’t get done and each department was slowing the other down by not efficiently running their departments.
As much as company managers face a lot of burden in their works, it is better to get along with some of the issues that we might face along that might hinder the success capability. First, precise decision making which via voting to ascertain on matters pertaining the company, this is much better as an individual is not the one that makes decision on behalf of the whole organization, he voting are acquired after shares are divided such that each share is a one count vote. Secondly, there is unbiased structure as CEO’s and managers cannot make decision for their own self-gain but for the company, (Michael &Andrew, 2001). This means that the top level managers and the executives are not basically the owners as they are differentiated from those who own the company’s daily operation from stock
LEARNER’S NAME: EMMANUEL DIBIAGWU ASSIGNMENT 2 UNDERSTAND HOW TO DEVELOP AND MAINTAIN EFFECTIVE WORKING RELATIONSHIPS 1.1 Explain the benefits of effective working relationships in developing and maintaining the team (20 marks) The benefits of effective working relationship in developing a team include the following: Improved Morale Good working relationships in teams help to improve the morale of team members. When there is effective working relationship among employees as well as managers, the employees feel that they are respected, and their voice are heard, thereby fostering an enabling workplace full of energy and overall happiness. Effective working relationship between employees enables them to support each other when improvement is called for and helps to develop their esteem.
channels” if we want change, however, having tried, it is now understood that these “channels” change nothing and are very ineffective. We have tried numerous proposals such as opening up council meetings for all students to better communication throughout the VPI student body. Although, just as the results of all the other attempts by going through “legitimate channels” our proposal was struck down. The article also offers a possible solution to prevent future demonstrations from occurring through the creation of a “committee composed of students from various segments of student life at VPI”. The committee would then meet with administrators every month “to air their views” and this would help diminish the feeling of students who believe they are not represented (Evidence 1: Ed Miller, “What caused demonstrations,” April 1970).
Underneath the Chief executive, there is 5 different sectors in Macmillan that are run under the Chief executive and the board of trustees. Which they have to keep under control first sector is services
1. In establishing a constructive climate for his or her class, what kind of structure has each professor put in place? Professor Gardner has given each student a set of guidelines and rules he expects in his classroom.
Fiduciary duty: A fiduciary duty is a legal obligation to act in the best interest of a client or broader corporate entity. It sets the expectation that directors and officers place the interests of the firm over their personal interests. Business judgment rule: The business judgment rule lays out two requirements for directors and officers: that they uphold the duty of care and the duty of loyalty.
On November 9, Mead School District held the fifth school board meeting of this academic year. Running the meeting was Superintendent Tom Rockefeller, President Board Director Ron Farley, Vice President Board Director Denny Denholm, and Board Directors, Maureen O’Connor, Robert Olson, and Carmen Green. All of the directors were recently re-elected, excluding Maureen O’Connor who isn’t up for re-election until next year. Due to this, there was an almost celebratory feel to the meeting, with many of the Directors, especially Vice-President Denholm, making jokes and being conversational with the small audience. At the meeting, I was the only person attending that was not giving a presentation to the board.
For my educational experience, i attended a school board meeting on April 26th at the District center. This was my first school board meeting, so i wasn 't sure what to expect, but i wasn 't expecting that set up. I was expecting more parental and community involvement, those stereotypical parents who criticizes everything about the system. Instead i found myself with adults who looked like they were doing the same amount of observing as me. There was 8 board members sitting together in a closed square flip top, i didn 't particularly like this because a few members had there back faced to the guests and it felt like guests/other presenters weren 't as important or acknowledged really.
5 Businesses or organizations throughout the world exhibit their own audit controls as well as observe specific procedures. When addressing IT audit issues, a business such as Asplundh Tree Expert, Inc. are known for their efficient audit procedures and internal practices. IT audit process effectiveness happens when an organization or business is adhereing or responding to set procedures. An organization may conduct several diverse audits, but consequently regardless of the audit type used, an audit is done to ensure a business or organization are using all resources available to them and for their benefit. Diverse IT audit selection ensures that the company set and meet goals and objectives that have been laid down by the international standards
At Lockheed Martin, shareholders represent a significant portion of this demographic. They are anyone who owns Lockheed’s stock and is impacted by its performance; positively when the stock rises and negatively in times of poor performance. Lockheed is concerned about its shareholders because they are entitled to earning profits from its stock as investors and owners of the company. If shareholders become dissatisfied they can change how the company is run; for example, they can replace the existing board of directors through a voting process. Consequently, Lockheed Martin’s decisions are focused on generating profit for their shareholders to increase stock valuation.
A Strategic Report provides shareholders of the company with information that will enable them to evaluate how the directors have performed their duty to promote the success of the company. A strategic report will always contain information that is material to its shareholders just like an annual report. A strategic reports main objective is to provide an understanding into the company’s business model and its main strategy and objectives. It also provides the users about the risks faced by the company and its impact in the future. The companies past performance is also analysed in the strategic report.
High degree of responsiveness of between various functional head and CEO. 2. Inter department decision making is smooth i.e. the functional heads can make decision based on other functions smoothly. 3. Centralized controlling system.
It must be full fill the business concern’s requirement. Every organization must maintain adequate amount of finance for their smooth running of the business organizations and to achieve the business goals. Importance of Finance can’t be neglect in an organization. Some are the importance of financial management is as follows: • Financial Planning Financial planning is an essential part of the business organization. Financial management helps to determine the financial requirements of the organization and leads to take financial planning to the organization.
As stated in Principle 1, The Board of Directors directs the Group’s risk assessment, strategic planning, succession planning and financial and operational management to ensure that obligations to shareholders and other stakeholders are understood and met. The board of directors has a collective responsibility for the management of the group to make sure the group is on the way to approach to their objectives while the non-Executive Directors are responsible for bringing independent judgment and scrutiny to decisions taken by the Board of Directors and providing objective challenges to management. Besides, the board of directors also function as formalising and adopting a set of Code of Ethics through the Code of Conduct as Recommendation 1.3 as stated in the Malaysian Code on Corporate Governance 2012 to make sure its compliance, establishing an appropriate set of corporate disclosure policies and procedures and ensuring a whistleblowing mechanism is in place. The Board of Directors recognizes the importance of independence and objectivity in its decision making process. The Directors are professionals of high calibre and integrity and possess in-depth knowledge and experience of the business to enable them to discharge their duties effectively.