Financial Management for Policies and Practices- myassignmenthelp

Question: Discuss about theFinancial Management for Policies and Practices. Answer: The Importance of board of directors for public- listed company . Boards of directors is a group of people who take into consideration the operations and activities of the organization. In public limited company, there should be minimum 2 directors. The directors are the important part of the organization as the decisions are made by them in operating the functions of the company. They are appointed so that they can act on the behalf of the shareholders to run the day to day activities. They are liable to the shareholders and every year the company conducts the annual general meeting in which the directors give a proper report that is based on the performance of the company. The vision and mission of the company are determined by the directors by taking into consideration the current operations and development. The board of the directors determines the values that should be promoted in the company. The significant role that is played by the board of directors is related to determine the company goals and policies so that the profitability can be attained. The key role of the directors is to take into consideration the prosperity by considering the company's affairs that fulfill the requirements of the shareholders. To enhance the image of the organization in an effective manner the boards of directors are responsible and also they try to minimize the threats and risks in the external environment (Masulis Mobbs, 2014). The financial and non-financial transactions of the company are evaluated by the board of directors. The employees work according to the directions implemented by the directors. If boards of directors are not there in the organization, the n it can be very difficult for the organization to sustain in the market. The legal responsibilities of the company are taken into consideration by the boards of directors. The decisions of the organization are also taken by them. To implement something new in the organization, then it is essential to take approval from the directors of the company. Without the approval, the company cannot follow any new structure (Krause Bruton, 2014). To manage the authority of the management and also to implement the strategies and business plans the boards of directors are involved in it. Communication with the senior management is also done by them so that the profitability can be enhanced. A director considers the affairs of the company and should also trust the employees. If there is no trust between the management and the directions the activities cannot be conducted effectively. They are also considered as an essential mechanism for evaluating the performance level of the managers and also to safeguard the interest of the shareholders (Zona, Zattoni Minichilli, 2013).There are various organizations in which the law can be seen that create balance between the managers and the directors so that the company can manage the profits and also prevent abuse of the freedom. The main importance is to manage the books of accounts. So, it is evaluated that the directors are an essential part of the public limited company, as all the a ctivities are conducted under their supervision (Tricker Tricker, 2015). References Krause, R., Bruton, G. (2014). Agency and monitoring clarity on venture boards of directors.Academy of Management Review,39(1), 111-114. Masulis, R. W., Mobbs, S. (2014). Independent director incentives: Where do talented directors spend their limited time and energy?.Journal of Financial Economics,111(2), 406-429. Tricker, R. B., Tricker, R. I. (2015).Corporate governance: Principles, policies, and practices. Oxford University Press, USA. Zona, F., Zattoni, A., Minichilli, A. (2013). A contingency model of boards of directors and firm innovation: The moderating role of firm size.British Journal of Management,24(3), 299-315.