INTB 336 Chapter Notes - Chapter 6: Functional Skills Qualification, Liability Insurance, Business Judgment Rule
26 May 2017
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Chapter 6- forming and working with the board. Many corporations have filed director positions with agreeable family members or friends rather than an active truly independent board. Benefits of an independent board outweighs the drawbacks. Ceo can better assist the company in achieving its full potential when he or she is able to benefit from other people"s experience and wisdom. Reasons for creating an active outside board are numerous. Board members bring perspective and experience to the table and provide a set of complementary skills for the ceo. Board can help top management recognize the need for long term planning and can assist the ceo in developing long-range strategies. Boards provide a framework for control and discipline and give the ceo someone to answer to. Securing financial and other information needed by the board can become an internal check for the ceo. Directors can fill the ceo"s need for a mentor or coach.
