Board of Directors Flashcards
Who are directors elected by?
Shareholders
What are directors?
The ‘employees’ who manage the company for the shareholders.
What does the board of directors include?
A chair, executive directors and non-executive directors
What are the executive directors responsible for?
Day-to-day running of the company.
What are non executive directors?
Non-full time employees of the company
What do executive directors do?
Give advice
Who’s remuneration is greater between the executive and non-executive
Executive
According to The Companies Act 2006, what must directors do?
Act within powers Promote success of company Exercise independent judgement exercise car Avoid conflicts of interest Stay confidential
What are the directors responsibilities for the financial statements?
Ensure they are accurate and show a true and fair view
Ensure they are prepared with international accounting standards and concepts
Prepare directors report
Appoint auditors
Ensure they are completed on time for submission to Registrar of Companies
How does integrity apply to the role of directors
Ensure financial statements show accurate and true view of companies financial statement
How does objectivity apply to the role of directors
Must avoid conflicts of interest, must disclose an interest in any proposed transactions
How does professional competence and due care apply to the role of directors
They must exercise reasonable care, skill and diligence
How does confidentiality apply to the role of directors
Must not share sensitive information about performance or financial position of company
How does professional behaviour apply to the role of directors?
Act within their powers and promote the success of company
