Another way to think of it is that directors are like school governors.
They are powerful, but even more so they are responsible for the organization.
Company directors are public figures. They can be investigated for misconduct, struck off from being a director again, and must publish their personal details publicly. (They can also sign passport applications and vouch for visa applications: you get ups as well as downs!)
They appoint the executives but they have to fire them too, and are held accountable for the behavior of the people they choose. Mess it up and you’ll never sit in a board again.
The stakeholders go straight to the directors when things go wrong. This is especially fun when you have hundreds of thousands of members of the public as stakeholders in a publicly traded business.
They are powerful, but even more so they are responsible for the organization.
Company directors are public figures. They can be investigated for misconduct, struck off from being a director again, and must publish their personal details publicly. (They can also sign passport applications and vouch for visa applications: you get ups as well as downs!)
They appoint the executives but they have to fire them too, and are held accountable for the behavior of the people they choose. Mess it up and you’ll never sit in a board again.
The stakeholders go straight to the directors when things go wrong. This is especially fun when you have hundreds of thousands of members of the public as stakeholders in a publicly traded business.
The buck stops with them.
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