Table of Contents
Scott Bates was again elected as a Port Authority Chairman of the Board of Directors in Connecticut, Newhaven port authority, the vote was open and not anonymous. Learn more about the powers that the chairperson has and how the board works.
Purpose of the Council
A high-quality corporate governance system and an efficiently working board of directors are the most important conditions for the long-term sustainable development of a modern company. Unfortunately, in practice, not all companies follow the recommendations of the best practice and approach to organizing the work of the board of directors, formally or automatically approving the decisions of shareholders, or completely following the decisions made by the management.
Nevertheless, in companies aimed at long-term successful development, especially with the shareholders moving away from the operational management of the business “in manual mode”, the role of the board of directors increases dramatically. In fact, in this situation, the board of directors becomes for shareholders the most important and practically the only tool to ensure ownership control. The practice of work of boards of directors is being improved, and in recent years, it has become relevant for an increasing number of both private and state-owned companies. The replacement of officials and the introduction of external directors to the boards of directors of companies with state participation give rise to the need for methodological materials that allow members of the boards of directors to properly structure their work. In this regard, the emergence of methodological recommendations on the organization of work of the boards of directors is important.
The Board of Directors is a collegial management body of a joint stock company, reporting to the general meeting of shareholders, consisting of equal members, implementing their decisions by voting in person and in absentia meetings, responsible for the results of the activities of the Company entrusted to them. The board of directors is a decision-making body, not an advisory body.
An effective board of directors is a key element of an effective corporate governance system. From what tasks the council puts to the management, what questions it asks during the meetings, how thoroughly it checks and analyzes the information received from the management, the efficiency of the company’s activity depends.