They must, to the best of their ability, provide the shareholders with a suitable return on investment. The articles of association set out the scope and duties of directors. Typically medium to large companies have a group e.g. four to eight, each Director having an area of functional responsibility for operations. One is typically appointed as the Managing Director or Chief Executive who oversees and co-ordinates all operations. The Chairman chairs Board meetings and ensures that full reporting to shareholders is undertaken.
Directors are company agents and can make contracts on the company s behalf.
This is a professional role as the responsibilities involve important administrative functions often of a legal nature. The company secretary is responsible for submitting the audited accounts to the Registrar of Companies and has the legal authority as a company agent to make contracts on the company s behalf. Management and Employees Executive directors take responsibility for the running of designated functional areas of a company. In sizeable companies, the process of delegation enables directors to appoint others. Sub-ordinate staff are accountable for carrying out delegated roles and duties but the primary responsibility rests with the Directors.