Duties of Corporate People

In: Business and Management

Submitted By argates
Words 832
Pages 4
Within any corporation, an organizational structure must be maintained to ensure that the organization maintains itself within the governing documents of the state and of the corporation itself. Some of the most important people in the organizational structure include the board of directors and the officers of the corporation. However, these management personnel must also ensure that their actions are in line with the shareholders of the corporation, which typically are set out to increase profits. These three groups of personnel within an organization are important and their individual duties must be fully understood. Additionally, the differences between publicly held corporations and close corporations are important to examine alongside these duties. The first group of personnel to examine is the directors of the corporation. Many corporations establish a board of directors who have the authority to most any action according to the organizational governing documents. According to Mallor, Barnes, Bowers, & Langvardt "the board's authority includes not only the general power to manage or direct the corporation in the ordinary course of its business but also the power to issue shares of stock and to set the price of shares" (2010, p. 1049). The Board of Directors approval must be obtained for most, if not all, major changes to the organization to include any amendments to the articles of incorporation, mergers of the corporation, or dissolution of the corporation. In comparison, the Board of Directors of an organization is similar to Congress within the United States government structure. However, this body of directors within the organization does not typically manage the day-to-day operations, but establishes committees and officers to manage the organization in their place with final decision authority regarding major decisions. The Board of Directors of most…...

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