Assignment PreviewNon-Executive directors responsibility to Shareholder
The living standards of the people across the world have been increasing as the world is growing. Most of the contribution has been on part of the businesses. The businesses have been developed to make people’s lives better. In the beginning there used to be sole proprietorships; later emerged the partnerships. As the things kept on growing, there emerged the concept of corporations and the companies where more than 2 people were involved in establishing and investing to form a business entity and share the profits.
As the law and other regulations emerged, there were formed rules for running and managing the corporations. As the entities grew bigger; it became difficult for the owners of the business to look after the business processes in person. Then the governance and law regulations were formed that assigned this responsibility to a separate body of people who can (on the behalf of the owners of the company) oversee the management of the business entity.
The body is known to be the supreme most authority within a company and is called the board of directors. The board of directors includes the people who are competent enough to oversee the managerial and strategic activities of the company and could guide the management staff to make the best out of the available resources. The board of directors is appointed by the owners themselves.