The Board s Role From Boardroom Challenges The Future of Boards The Future of BoardsWhy so many directors were reflecting on the board s role is difficult to pinpoint. A partial answer undoubtly rests in the fact that regulations and laws offer little guidance about what boards are suppos to do. In most states the basic statute that descris the purpose of boards is phras very broadly.
A For instance in Delaware
Which sets the standard for other states directors find little help in the statute that defines their job The business and affairs of every corporation shall manag by or under the direction of a board of directors. This statute also tells directors that they Argentina WhatsApp Number List may delegate the actual running of the company to its officers. Court decisions relat to director conduct are largely focus on matters of process that is on how boards are to carry out their duties. For example directors must exercise good business judgment and loyal to the corporation. As one director told us Our board lawyers say You know the board memrs are not suppos to making the management decisions.
You re just suppos to comfortable that
The management is going through the appropriate processes to come to well thought out decisions. of specificity about their duty most boards gradually Malta Phone Number List develop an implicit understanding of what their job should . As long as the business was thriving and management was comfortable with what the board was and wasn t doing there was no ne for greater explicitness. But the economic shock of appears to have caus many directors to reconsider what their boards had en doing and to question whether they could or should acting differently.
