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Question
Justify the following statement:
The Board of Directors are the elected representatives of the shareholders.
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Solution
(1) In a joint stock company, there is a separation of ownership from the management. Although the shareholders are the owners of the company, they never participate in the management. The shareholders elect their representatives from amongst themselves. The elected representatives are called ‘directors’. The directors form themselves into a body called a Board of Directors. Thus, the Board of Directors is the elected representatives of the shareholders.
(2) The shareholders delegate their powers of management to the Board. The Board after discussion decides the matters frame the policies and takes policy decisions. The managing Directors with the help of the managerial staff implements the policies.
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RELATED QUESTIONS
Select the correct answer from the option given below and rewrite the statement:
Representatives of shareholders are __________.
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The notice of the meeting of the Board of Directors must be accompanied by __________.
Write a word or a term or a phrase which can substitute the following statement.
A meeting of all the directors of a company.
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A written invitation was given to the Director to attend the meeting.
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Director can take decisions individually.
Select the correct option from the bracket:
| Group A | Group B |
| _____________ | Meeting of all directors |
Write a letter to the director who was absent for a board meeting to inform him about proceeding of the meeting.
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Directors exercise their powers and authorities collectively as a Board.
Answer in brief:
What are the points to be considered by a secretary while corresponding with the directors?
Complete the sentence.
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Explain the following term/concept:
Notice and Agenda of the Board meeting
Explain the following term/concept:
Initiative
Explain the following term/concept:
Conciseness
Correct the underline words and rewrite the following statement:
Secretary is responsible for decision making and framing policies of a company.
