Explain the following terms/concepts.
(1) The elected representatives of the shareholders are called Directors of the company. The shareholders vest in them all the powers of managing the affairs of the company. In the company management, the role of Directors is threefold. Via
(a) as the agents of the company
(b) as the trustees of the company and
(c) as the managing partners.
(2) The directors occupy a key (important) position in the management of the company. They are responsible for decision making. Framing policies and plans. They exercise their powers and authorities collectively as a Board. They sometimes do not remain in the company’ office. So they ask for the information from the secretary, which helps them to make proper decisions.
2) Board of Directors
(1) The collective term applied to the full complement of the directors of a company. It is the Board of directors rather than individual members of it Which is responsible for directing the activities of the company, framing plans and policies decision making, and carrying out other important functions of the management of the company. The directors exercise their powers collectively as a Board. They cannot exercise their powers in an individual capacity.
(2) The directors are superiors and occupy an important (key) positions in the management of the company. They are authorised by the shareholders to utilise the capital to acquire assets to appoint the personnel to conduct the affairs of the company for the benefit of the shareholders. The Board of Directors is the policy-framing and decision making organ of the company. The Board of directors elects their representative from amongst them as Managing Director. The managing director is required to execute the policy framed by the Board.
(1) The term ‘concise’ means brief and to the point. A good business letter must be brief and to the point. It is very essential that the letter should not be lengthy. Businessmen have too many letters to read. They want to know the contents of the letter at a glance.
(2) The letter should not contain unnecessary details, long descriptions, irrelevant details, lengthy sentences, redundant words, etc. Repetition should be avoided and the words having double meanings should not be used. The letter was written should provide maximum information in minimum words. However, conciseness should not reduce clarity.
1) Politeness means courtesy, kindness, presentation of good (excellent) manners. The language of a business letter must be polite, convincing and unoffending. A politeness 1n the letter helps to build a cordial relationship between letter writer and reader. The use of words like “please”, “very kind of you”, “much obliged”, “thankful to you”, etc. creates a good impression on the reader.
(2) Polite words and respect for the feelings of others are the prerequisites of courtesy. However, courtesy (politeness) does not mean flattery or humility. The letter may be firm but the tone must be courteous. A courteous (polite) letter builds up the goodwill and image of the organisation.
(1) Initiative means the ability or the power or opportunity to act or take charge before others do. The initiative can also mean a personal quality that shows a willingness to get things done and take responsibility. It is the start of something with the hope that it will continue.
(2) A company secretary is required to take initiative (a lead) in making arrangements for the board meetings. The company secretary informs the directors to convene Board meetings, shareholders meeting on schedule time. He takes initiative to convene different meetings of the company. Secretary also takes initiative to help directors in the smooth conduct of the meetings.
6) Notice and Agenda of board meeting
(1) Notice of a board meeting is a formal and advance. Invitation in writing given to all the directors entitled to attend The Board meeting. The notice of the Board meeting contains information such as venue, day, date, time of the meeting. It is sent to every director at least 7 days prior to the date of the Board meeting either by hand delivery or by the post. It may be sent by electronic means.
(2) Agenda of a Board meeting is a list of items of business serially arranged on which discussion is invited in a Board meeting so as to arrive at certain decisions. The agenda is sent with or maybe a part of the notice of the meeting. It is drafted by a secretary in consultation with the chairman. The chairman takes up for discussion the items usually in the same order as on agenda. He can change ‘the order with the consent of the house.