Board Roles, Corporate Bylaws, and Franchise Operations Essentials
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Corporate Governance: The Board of Directors
Purpose and Functions of the Board of Directors
The Board of Directors is a group of people who jointly oversee the activities of a company. Their primary functions include:
- Representing the interests of the shareholders and the company stakeholders.
- Determining dividend policy and distribution to shareholders.
- Approving annual budgets.
- Supporting the CEO (or hiring/replacing top executives).
- Hiring and firing top executives.
- Deciding on executive compensation.
Who Appoints the Board of Directors?
The shareholders of a public company choose the members of the Board of Directors. This selection process may vary depending on the type of business structure.
Executives Reporting to the Board
The CEO and the President... Continue reading "Board Roles, Corporate Bylaws, and Franchise Operations Essentials" »