Question

What is the role of a Board of Directors in corporate management, and from where do directors obtain their power to make these decisions?

a. To make sure that bond holders receive no money and that stock holders receive all of the money in a corporation. The Board of directors is inherently corrupt and any bank that lends to a company that has a board of directors will lose money.

b. The Board of Directors (BOD) is made up of the top level management, each called a director, of the corporation. They manage the day-to-day operations of the company. The Chairman of the Board is always the CEO. The power to make these decisions is from employment in the Board itself.

c. To provide oversight and, if necessary, termination of CEOs and other top-level management at corporations. They obtain their authority through ownership of shares which grants voting power to the directors through a process known as proxy.

d. Members of Board of Directors are completely and utterly independent of the company. Since all members of the BOD are external the BOD provides monitoring and oversight of the company and it's CEO--who is always Chairman of the Board.

Answer 1

The correct answer is:-

b. The Board of Directors (BOD) is made up of the top-level management, each called a director, of the corporation. They manage the day-to-day operations of the company. The Chairman of the Board is always the CEO. The power to make these decisions is from employment in the Board itself.