According to sec 2(13) c of the Indian companies act. Director means any person occupying the position of the director in individual capacity. The directors individually have no powers but collectively they have total power over the CEO.
The exclusive powers of BOD are as follows:
- Protecting shareholder interest.
- Developing strategic vision for the organisation.
- Identifying areas for availability of cheap loans.
- Areas in which surplus investment can be made.
It is the responsibility of BOD to:
- Develop corporate strategy.
- Hire or fire CEO.
- To control or monitor the top management.
- To review and appraise the use of resources.
The role of BOD involves carrying out three main tasks:
- To monitor- external and internal environment and help the organisation to stay afloat.
- To evaluate- evaluate various strategies alternatives and influence the decision making process.
- To initiate and determine- determine long term and short term objectives based on vision and mission and decide the course of action.