Roles and responsibilities of chairman of board of directors Essay

Roles and responsibilities of chairman of board of directors - Essay ExampleRoles and Responsibilities of death chair of card of Directors (BOD)The chairmans role includes managing the boards business and performing as its facilitator and guide. This would involve managing the business of the Board and preside over its meetings setting Board meeting agendas, taking full account of the issues and the concerns of all Board members ensuring that members of the Board receive accurate, timely and clear information, in particular about the Companys performance, to enable potent performance of their dutiesmonitoring progress towards the timely and effective achievement and implementation of the objectives, policies and strategies set by the Board and of other decisions taken by or on behalf of the Boardfacilitating the effective contribution of non- executive directors and go through constructive relationships and open communication, both between non- executive directors and executive d irectors and between the Board and investors ensuring that members of the Board understand the views of major shareholders and other key stakeholders promoting the highest standards of corporate authoritiesmanaging the Boards time to ensure that sufficient time is allowed for discussion of complex or contentious matters ensuring that new directors receive an induction programme that is spare and comprehensive monitoring and addressing the development needs of individual directors and of the Board as a whole and ensure that the performance of individual directors and of the Board ... When an individual serves concurrently as chairman and chief executive officer, the Boards control over him will be weakened. This does not happen when the roles are separated.The role of Chairman includes managing the business of the Board and monitoring its progress. Non-segregation of duties of Chairman and CEO would reduce the monitoring effectiveness over the management of the company.Opportunis tic executives may take advantage of their combined role as Chairman and CEO in order to personally benefit at the expense of the shareholders. The chances of such injustice would reduce to an extent if the roles are separated.However, segregation of roles of Chairman and CEO could break dance rise to certain issues such asWhen the roles are segregated, conflicts between the Chairman and CEO may become common if there is lack of goal congruence.Having a single leader instead of two helps promote effective action by the CEO speeding up response to external events faced by the company. Separation of roles could lead to delays in such response.(2) (i) Theoretical Ex-Right Price (TERP)TERP = (Number of rights required to buy one new share X Market price forwards rights issue) + Subscription price / (Number of rights required to buy one new share + 1)= (4 x 20) + 15 / (4+1)= 19Number of shares to be issued in the rights issue = 100 million / 15 = 6,666,667 shares(ii) nurse at which th e rights are likely to be tradedValue of rights = (Market price of common stock - Subscription Price) / (Number of rights required to purchase one of the new shares of common stock)= (20 - 15) / 4= 1.25(iii) evaluation of the three optionsOption 1 Profit that can be earned by Apple Insurance Plc if it takes up the rights(a) Theoretical ex-right price per