It acts as the Trustee of Shareholders – The director’s act as representatives of shareholders and work with utmost faith and degree of honesty in protecting long term aims of wealth maximization of company.

1. Role of board of directors
Corporate Management

2. Prepared By
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Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com

3. Role of board of directors
• It acts as the Trustee of
Shareholders – The
director’s act as
representatives of
shareholders and work
with utmost faith and
degree of honesty in
protecting long term
aims of wealth
maximization of
company.

4. Role of board of directors
• Determining the
fundamental objectives
and policies – The board
of directors play vital role
in long range planning
and set the overall goal
of the company within
the framework.

5. Role of board of directors
• Determining the
organization structure
and selecting the top
executives – It is the
prerogative of the board
to select the CEO and
other top level
managers.

6. Role of board of directors
• Approving financial
matters – These financial
matters relate to two
things namely, approval
of budgets and
distribution of the
corporate earnings.

7. Role of board of directors
• Maintaining adequate
checks and controls – In
the final analysis, the
board of directors is held
responsible for the result
of the company.

8. Role of board of directors
• Statutory functions –
Directors are to perform
certain legal functions
which are mandatory on
their part.