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In: Operations Management

Is usually delegated to members of a company's board of directors so as not to infringe...

Is usually delegated to members of a company's board of directors so as not to infringe on the
time of busy executives

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Expert Solution

In general terms organizational activities are normally controlled by its board of directors who are in charge of the business administration as they facilitate to formulate the strategic and operational decisions of the company and are responsible for ensuring that the enterprise complies with its statutory obligations.

Article of association and memorandum of association are the company legal documents and it does indeed provide that as a director he takes part in the company board meetings and facilitate the organization towards framing effective business policies and approach towards the attainment of business goals and objectives.

Furthermore as a director he needs to ensure that the business functions and abides with the legal requisite terms and conditions and performs effectively towards the accomplishment of its social obligatory responsibilities towards the consumers, shareholders and employees of the organization.

However as a director of an organization he could be held jointly responsible towards the contravention and breach of his legal responsibilities and duties unless as a director he is able to prove that he has not committed any wrong doings in violation to the provisions of law.

Generally directors are considered to be the agents of the company who are appointed by the shareholders in order to administer its day-to-day business functions. Thus the fundamental rule is that the directors should perform collectively as board members and where the board delegates some authority and responsibility to an individual director then he needs to ensure that he executes the entrusted task with much more efficiency and effectiveness towards the attainment of the business goals.


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