Fernando's Business Ethics and Corporate Governance, 3rd Edition

INTRODUCTION

The separation of the ownership from active directorship and management is an essential feature

of the company form of organization. To manage the affairs of a company, the shareholders

elect their representatives in accordance with the laid down policy. These representatives are

called the “directors” of the company. A number of such directors constitutes the “board of

directors” and that is the top administrative body of the corporation. The board may sometimes

appoint an executive committee to carry on certain assigned functions under its direction.

The board generally has only part-time directors.

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