English for Managers. Аристова Е.В. - 15 стр.

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УлГТУ | Ульяновск

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UNIT 3
Text 3.1
What is the Purpose of a Board of Directors?
A company's board of directors helps management develop business plans,
economic policy objectives, and business strategy. A board of directors often selects
the chief executive of the business, supports him, reviews his performance, and may
dismiss him.
Through regular meetings, the board helps ensure effective organizational
planning and sees that company resources are managed effectively. The board of
directors also sees that the company meets regulatory requirements that apply to that
business. The board of directors also must assess overall performance of the
corporation.
Directors monitor a company's financial performance and the success of its
products, services and strategy. Directors are expected to follow developments that
affect the business. They must set aside any potential conflict between their personal
or individual business interests to support the well-being of the business which they
serve.
The most effective board of directors will be a group of profession-111 w ho
bring a breadth of skills, experience and diversity to a company. V 1 lie company
grows and changes, the governing board also will 1 lunge to meet changing needs and
circumstances.
What are Major Duties of Board of Directors?
1. Select and appoint a chief executive to whom responsible-ii v for the
administration of the organization is delegated, including:
• to review and evaluate his/her performance regularly on the basis of a specific
job description, including executive relations with the board, leadership in the
organization, in program planning and implementation, and in management of the
organization and its personnel
• to offer administrative guidance and determine whether to retain or dismiss
the executive
2. Govern the organization by broad policies and objectives, formulated and
agreed upon by the chief executive and employees, including to assign priorities and
ensure the organization's capacity to tarry out programs by continually reviewing its
work.
3. Acquire sufficient resources for the organization's operations and to
finance the products and services adequately
4. Account to the public for the products and services of the organization
and expenditures of its funds, including:
- to approve the budget, and formulate policies related to contracts from public
or private resources
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