Power and Functions of Board of Directors

Important Power & Functions of board of directors

  • Determination of the dividend payable;
  • Admission of new members;
  • Pursue and formulate the organizational policy, objectives, establish specific long- term and annual objectives, and approve corporate strategies and financial plans;
  • Appointment of chief executive and such other officers of the producer company, as may be specified in the articles;
  • Exercise superintendence, direction and control over chief executive and other officers appointed by it;
  • Cause proper book of account to be maintained; prepare annual accounts to be placed before the annual general meeting with the auditor’s  report and the replies on qualifications, if any, made by the auditor’s;
  • Investment of the fund of  company in the ordinary course of its business;
  • Sanction any loan or advance, in connection with the business activities of the company to any member, not being a director or his relative;

All the above power can be exercised only by the means of a resolution passed by the board at its meeting on behalf of the company.