In general, the board of directors is a group of elected or appointed members to oversee activities of a company or organization. The board of directors has a fiduciary duty to grow the long-term success of the corporation for the benefit of shareholder, and sometimes for debt holders. The basic fiduciary duty includes: 1) duty of care -duty to make/delegate decision in an informed way; 2) duty of loyalty -duty to advance corporate over personal interests; 3) duty of good faith-duty to be faithful and devoted to the interest of the corporation and its shareholders; 4) duty not to “waste” -duty to avoid deliberate destruction of shareholder value. Generally, the board of directors performs major detail functions as below: 1) provide continuity for the organization; 2) select and appoint a chief executive; 3) govern the organization by broad policies and objectives; 4) acquire sufficient resources for the organization’s operations and to finance the products and services adequately; 5) account to the public for the products and services of the organization and expenditures. The board is corporate governance of the company, [continues]
Cite This Essay
(2012, 07). Vector Aeromotive Corporation. StudyMode.com. Retrieved 07, 2012, from http://www.studymode.com/essays/Vector-Aeromotive-Corporation-1040025.html
"Vector Aeromotive Corporation" StudyMode.com. 07 2012. 2012. 07 2012 <http://www.studymode.com/essays/Vector-Aeromotive-Corporation-1040025.html>.
- MLA 7
"Vector Aeromotive Corporation." StudyMode.com. StudyMode.com, 07 2012. Web. 07 2012. <http://www.studymode.com/essays/Vector-Aeromotive-Corporation-1040025.html>.
"Vector Aeromotive Corporation." StudyMode.com. 07, 2012. Accessed 07, 2012. http://www.studymode.com/essays/Vector-Aeromotive-Corporation-1040025.html.