Question

roles and responsibilities of executive directors , non executive directors and Chief executive officer- managing director also the power of company directors

Answer 1

EXECUTIVE DIRECTOR:

• An executive director is a senior operating officer or manager of an organization or corporation, usually at a non-profit.

ROLE:

• Executive Directors are tasked with creating business plans, overseeing day-to-day activities, improving performance, developing organizational culture, supervising heads of departments, reporting on revenue, and directing organizational strategy.

RESPONSIBILITIES:

• Developing and directing organizational strategy.
• Drafting organizational policies and philosophies.
• Overseeing day-to-day business activities.
• Conducting performance reviews.
• Preparing comprehensive budgets.
• Reporting on revenue and expenditure.
• Engaging with community groups.
• Creating sound business plans.
• Coaching department heads.
• Overseeing financial accounts.

NON EXECUTIVE DIRECTOR:

• A non-executive director is a member of a company's board of directors who is not part of the executive team.

ROLES:

• Non executive directors not have much roles to play as executive directors but some of their roles are develop proposals on strategy, monitoring the performance of the management, Non-Executive Directors should satisfy themselves on the integrity of financial information and that financial controls and systems of risk management are robust and defensible and responsible of determining appropriate levels of remuneration executive directors and have a prime role in appointing and whereby neccessary removing, executive directors and in successive planning.

RESPONSIBILITIES:

• Key accountabilities
• Time commitment
• Duration
• Monitoring executive director
• Keeping entire board accountable.
• Acting in the interest of company stakeholders.

MANAGING DIRECTOR:

• Managing director is a person who controls the whole business of a firm.

ROLES:

• To direct and control the company’s operations and to give strategic guidance and direction to the board to ensure that the company achieves its mission and objectives.
• Maintaining the strategy and performance of the company as dictated by the boards overall strategy.

RESPONSIBILITIES:

• Develop and implement plans and objectives for the department in an effective and innovative fashion.
• Oversee and coordinate daily operations.
• Assess and report progress in meeting department objectives.
• Participate in budget development and monitoring of expenses.
• Oversee events and conferences as needed.
• Generate necessary reports for the executive team.

POWER OF COMPANY DIRECTOR:

• The board of directors is the highest authority in any company. According to Section 179, Companies Act 2013, the power of directors of a company – entitled to make any and all decisions, and thus exercise all the power, which the company has authority to enact.
• Make calls on shareholders
• Authorise the buyback of securities and shares
• Issue securities and shares
• Borrow monies
• Investing the funds
• Grant loans
• Approve the financial statement
• Approve amalgamation/merger
• Diversify the business
• Take over a company

These are some of the powers of company directors as per the company act.