The corporate governance includes the practices, rules and the processes which are controlled by the company. The corporate governance helps to balance the interest of different stakeholders of the company which includes management, suppliers, government, shareholders and customers. All the objectives of the company can easily be accomplished with the help of the corporate governance. The meaning of the governance includes controls, resolutions, policies and set of rules. It is the importance of the shareholders that they can directly affect the governance.
The board of directors is the “highest governing authority within the management structure at any publicly traded company” (Kennon, 2008). For this reason, the board is in charge of defining the corporate mission, setting the company’s objectives, constituting sub committees like the remuneration, risk and audit committee and approving the firm’s strategy concerning the allocation of the financial resources (Oss, 2003). Regardless of wielding such authorities, the board cannot manage the day-day operations of the company. “The board would thus put together a management team to be responsible for this” (Oss, 2003). According to Oss (2003), it is the board’s task to govern and the CEO’s to manage.
The board member determines the values of the Tashi bank to promote and determine the review the Tashi Bank’s company goal. The Tashi banks board member also implement the policy, rule and regulation of the organization (Brefi group). The board will also review upon the future threats towards the organizations and determine the precaution for the threats upon the organization form external sources. Roles and Responsibilities of CEO of the Company The CEO (Chief Executive Officer) role and responsibilities are to advice the Board and help develop or promote the mission and vision of the organization. Also motivate the employees of the Tashi Bank.
Moreover, from the above mentioned definitions, it can be noted that the main thrust of corporate governance is to enable the top executives to arrive at executive decisions in a systematic manner as opposed to haphazard approach. As such, from the above definitions one is compelled to conclude that corporate governance ensures that the directors and management run the company in a responsible and transparent manner on behalf of the
Corporate governance is subdivide into elements known to be (board of directors, disclosure and transparency, executive compensation, governance structure, compliance and polices, relationship with shareholders and stakeholders). Boards and executive officers are held accountable for the role in ensuring that business acts in a responsible and accountable
Michael (2015) defined board of directors as a body of elected or appointed members who jointly oversee the activities of a company or organization. Major responsibilities of board of directors include establishing vision, mission and values to be promoted throughout the company, setting structures and strategies that underpin the corporate strategy, monitoring and evaluating the implementation of policies, and exercising accountability to
Abstract The role of the board of Directors is evolving and has become more important in the wake of corporate scandals resulting in the collapse of large corporations and massive losses to shareholders. Accordingly, the role of the board, leadership, information, the quality of board relationship with the management, and decision collectively influence strategic decision-making. Meanwhile, poor governance can lead to wrong decision-making which might destroy organizations, particularly during times of environmental turbulence. The Arab Spring that sparked popular uprisings throughout the MENA region is one of many factors that created a turbulent economic and political environment for organizations in this region for the past three decades;
In addition, the Board always obligated to increase the shareholder’s value and responsible to the customers, employees, suppliers, the government and communities as well as to the environment. In the management, the Board will direct and supervise
Individuals are driven by purpose and they like to align themselves with leaders who are capable of making a difference 3. Creating a collaborative mind-set is important to an organisation and it helps align the business and is instrumental in aligning the purpose of the organisation and its goals. 4 Create a team, trust them and allow them to step into their leadership role. A leader’s responsibility is to create an environment where people and their talents flourish When a team is provided with purpose, they are capable of creating an infrastructure and establish a culture which has the ability to bring change at all levels in the