this post on the chartinglogin.com website
A corporate management structure determines the chain of command for a corporation and its employees. The structure can affect the way an organization is able to execute its business strategy and achieve its objectives. It can also assist the business in ensuring that it is compliant with labor laws and other governing laws. No matter what type of management structure is used by the company, it must always evaluate and improve its command chain to meet the legal requirements of the country where they operate.
Typically, the CEO bears the sole responsibility for corporate activities and approves contracts and other legally binding actions. The CEO is required to keep the board of directors informed of operations, risk and strategic planning.
The board of directors is accountable for establishing a company’s overall policies and goals which must be in line with shareholders’ interests. The board must ensure that the business has the financial resources to achieve its objectives and make sound investments. The board must also be sure that the company meets the needs of all stakeholders, including those of local communities and customers.
Corporate boards can be made up of shareholders or senior managers who are inside directors. Inside directors can offer valuable insight into company activities and projects from an internal perspective. Outside directors can offer important perspectives that complement the inside directors’ experience and expertise.
Larger companies can establish two-tier boards, which include a management board overseeing daily activities and a supervisory board which is responsible for approving budgets and monitoring the most important corporate initiatives and projects. Two tiers permit the separation of executive and managerial duties. It also helps reduce the risk of conflicts of interest by limiting number of board members who have direct managerial responsibilities with the company.