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The Board members should be fully informed before approving any decisions. The board represents shareholders' interests in overseeing the company and setting strategic direction, but should not organize company parties. The Audit Committee alone should approve appointments and audits, not exclude departments, and annually review the external auditor.

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43 views1 page

Document

The Board members should be fully informed before approving any decisions. The board represents shareholders' interests in overseeing the company and setting strategic direction, but should not organize company parties. The Audit Committee alone should approve appointments and audits, not exclude departments, and annually review the external auditor.

Uploaded by

Prince Pierre
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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1.

The Board members should act on a fully informed basis, in good faith, with due
diligence and care. In this case, when the Board approved the sale it only found out that
the woman was one of the daughters of one of their company directors. It must be
informed to all Board members of the company so that they know before it is approved.
Each Board has clear roles and responsibilities to follow.
2. The board represents the interests of the shareholders in the oversight of the company.
They are responsible for coming up with the policies to oversee and manage the
corporation. Generally, they are responsible for the strategic direction of the company.
Therefore, the board is not their duty to create a party committee to organize and
manage all parties and outings of the company. But they can have their own party
committee outside of the company only.
3. The board are not the one who exclude the production department from any audit
contending that the committee is illiterate. Only the Audit Committee should have a
robust process for approving and recommending the appointment, reappointment, and
removal, then approved by the Board and ratified by the shareholders. The Production
Department should not be excluded as it can provide company’s benefits. The Audit
Committee is the one seeking a new appointment in the production department. Also,
the Audit Committee is responsible for reviewing and monitoring the suitability and
effectiveness of the external auditor on an annual basis.

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