Form with which the board of directors of a corporation records the contents of its first meeting.
Board Of Directors In Corporate Governance In Houston
State:
Multi-State
City:
Houston
Control #:
US-0007-CR
Format:
Word;
Rich Text
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FAQ
A board of directors (BofD) is the governing body of a corporation or other organization, whose members are elected by shareholders (in the case of public companies) to set strategy, oversee management, and protect the interests of shareholders and stakeholders. Every public company must have a board of directors.
Government institutions are just one of the actors in the governance. Other actors include groups of citizens, civil society organizations, media, businesses, research institutes, trade unions, various associations, political parties, religious leaders. As we can see, each of us is part of the governance.
In general, the role of the board is to provide high-level oversight of corporate activities and performance, while some individual board members may take on more involved or activist roles.
Directors and managers (agents) are expected to act in the best interests of the shareholders (principal) by maximizing the company's equity value. These two groups, however, tend to have conflicting interests on issues related to the risks that a company should undertake.
Typically, governing boards are responsible for providing direction and oversight of key objectives for nonprofits and corporations. A traditional board of directors or board of trustees, referred to as a governing board, oversees the operations of a nonprofit or corporation.
The key actors include the board of directors, management, shareholders, and other stakeholders such as employees, suppliers, customers, and the community at large.
Within corporate governance, there are typically three key groups of stakeholders involved: shareholders, directors, and officers.
Federal and state-level laws, as well as a company's incorporation documents, require public and private corporations in the U.S. to have boards of directors (BoDs). Although private LLCs do not have the same requirements, some choose to elect a board of directors after incorporating.
Board of directors: The board of directors should set the direction of the company and monitor management in order that the company will achieve its objectives. The corporate governance framework should underpin the board's accountability to the company and its members.
21.057. BYLAWS. (a) The board of directors of a corporation shall adopt initial bylaws. (b) The bylaws may contain provisions for the regulation and management of the affairs of the corporation that are consistent with law and the corporation's certificate of formation.