LINCOLN UNIVERSITY COLLEGE

Nepal Business College

Buddha Bihar Marga, JanapathTole, Biratnagar-15
Contact No.: +977 21 470829/ 470865
E-mail: info@nbc.edu.np, nbc@lincoln.edu.my
Document Code: NBC.F.6-6 Version No.: 01 Issue No.: 01 Revision No.: 00 Effective Date : 2016/06/05

ASSIGNMENT COVER SHEET

ASSIGNMENT DETAILS
Program BBA MARKS OBTAINED
Semester Third
Subject/Subject Code Business Organization/ BBA 1313
Unit/Topic Roles and Responsibilities of BOD
Assigned Date & Time 2019/02/15
Submission Date & Time 2019/02/22
Due Date & Time 2019/02/22
`

STUDENT DETAILS
Student Name Nikesh Giri
Student ID LC00016000099
Student Signature

I confirm that this is an original assessment and is entirely my own work

where I have used ideas, tables, diagrams, etc. of other writers; I have
Student Declaration
acknowledged the source in every case. This assignment has not previously
been submitted as assessed work for any academic course.

OFFICE USE
Received By
Received Date

FACILITATOR FACILITATOR SIGNATURE

Mr. Ashish Panday

FACILITATOR’S FEEDBACKS & REMARKS:

Major Assignment on Roles
And
Responsibilities of BOD

Business Organization
BBA 1313

Submitted By
Navadeep Shrestha
LC00016000098

Submitted To
Mr. AashishPanday
On 22nd February, 2019 (Friday)
Table of Contents
Abstract ...................................................................................................................................... 4
Chapter 1:- Introduction ............................................................................................................. 5
1.1 Context Information: ................................................................................................... 5
1.2 Purpose of Study: ........................................................................................................ 6
1.3 Significance of Study: ................................................................................................. 6
1.4 Literature review: ........................................................................................................ 6
1.5 Research Methodology:............................................................................................... 6
Chapter 2:- Data Analysis and Presentation .............................................................................. 7
2.1 Company Profile: ............................................................................................................. 7
2.2 Roles and Responsibilities of BOD: ................................................................................ 8
Chapter 3:- Conclusion .............................................................................................................. 9
Bibliography ............................................................................................................................ 10
 Abstract

In this report, there is the explanation of the roles and responsibilities that a Director must
carry out if selected in BOD of a newly formed private Joint Stock Company. Being a
Director is a difficult task initially but being a director of a newly formed company is much
way too difficult because it has just started and if things are not carried out properly then
there might be chances of failure. In this report a cosmetic manufacturing company has been
recently established and the director must take actions very carefully for proper functioning.
This reports reader will be able to learn about the roles and responsibilities of a director that
has been selected to run a newly established Private Joint stock company.
 Chapter 1:- Introduction

1.1 Context Information:

A private joint stock company is one which, by its Articles restricts the right of the
members to transfer their shares, if any;, limits the number of its members (not including
its employees) to 50 and also prohibits any invitation to the public to subscribe for any
shares in, or debentures of, the company.When two or more person holds one or more
shares in a company jointly, they shall, for the purposes of this definition, be treated as a
single member.The Act does not indicate the manner in which the right of members to
transfer their shares can be restricted. However, it is sufficient if the directors can
somehow manage to restrict transfers in a manner that the maximum membership of 50
remains unaltered.

A board of directors is a team of people elected by a corporation's shareholders to

represent the shareholders' interests and ensure that the company's management acts on
their behalf. The head of the board of directors is the chairman or chairperson of the
board. Directors attend board meetings, evaluate management performance, tend to major
decisions (such as making acquisitions or selling the company), declare dividends, create
stock-option policies (including approving grants to key managers) and establish
executive compensation packages. Boards of directors often have several committees
dedicated to specific decision-making processes. (Investing Answers)

The role of the Board is to oversee the management of the Corporation and to represent
the interests of all the Corporation’s stockholders. The Board meets in regular session at
least six times per year and as otherwise required. Directors are expected to attend all
Board meetings and meetings of committees on which they serve, and they are frequently
called upon for advice and counsel between formal meetings. Responsibility is a duty or
obligation to satisfactorily perform or complete a task that one must fulfill and which has
a consequent penalty for failure.
1.2 Purpose of Study:
The main purpose of this report is to understand about the roles and responsibilities of
Director in Private Joint Stock Company.

1.3 Significance of Study:

This survey report is very important for understanding about the roles and responsibilities
of Board of Directors of newly formed Private Joint Stock Company. This report contains
the mission and vision statement of newly formed Private Joint Stock Company which
produces Cosmetics products.

1.4 Literature review:

An outside dominated BOD can have a positive influence if there is an honest desire on
the part of theCEO to have such a board, if there is a selection process that assures the
competence of such a boardand if there are shared expectations (between management
and the board) about the contributions tobe made by such a board. The typical family-
owned business has a concentrated shareholder base andfamily member insiders active in
both management and the board of directors. Many studies have been done from the
management perspective to determine whether, overall, this is a positive attribute for the
family business or whether it negatively impacts the business. Small businesses tend to be
less strategic when the ownership structure is more controlled than widespread. Given the
fact that past research establishes the connection between strategic planning and the
success of the family business, it would stand to reason that family businesses that are
more “insider” controlled would not be as successful as their counterparts. (Research
gate)

1.5 Research Methodology:

In this report the data and resources have been collected through the help of internet,
articles and other reports. Most of the data are secondary data and they have been used in
a different way to write the matters in the report. Basic research methodology has been
used in this report.
 Chapter 2:- Data Analysis and Presentation

2.1 Company Profile:

Soni Beauty Aids Pvt. Ltd is a newly established company producing all kind of beauty
products related to face. It is situated in Shanti Chowk, Biratnagar. It produces
Foundation, Blush, Powder, BB cream, Concealer, Contour, and Facial Mask etc. They
also produce products for men like Face wash, Sunscreen, Scrub, Aftershave etc. They
plan to produce more products for both male and females in near future. They also ensure
that their products are not harmful and easy to use. Their products are readily available in
mostly all cosmetic stores in Biratnagar and Itahari.

Our Vision
“Provide a wide variety of good cosmetic products in a reasonable price.”

Our Mission
“To produce and provide a wide variety of beauty products to both men and women
which could be used for daily personal or professional use in a reasonable rate. And also
to provide the products all over the nation which ensures the presence of the company in
the market.”
2.2 Roles and Responsibilities of BOD:
The roles and responsibilities of BOD are given below:-

 Establishing the organization’s strategic direction and priorities.

 Interacting with key stakeholders to inform them of achievements and ensuring they
have input into determining strategic goals and direction.

 Regularly scanning the external operating environment to ensure that the

organization’s strategic direction remains both appropriate and achievable.

 Monitoring organizational performance and evaluating the achievement of the

strategic and business plans and annual budget outcomes.

 Reporting back to the stakeholders at the Annual General Meeting (AGM).

 Establishing the policy framework for governing the organization from which all
operational policies and actions are developed.

 Ensuring the organization has appropriate corporate governance structures in place

including standards of ethical behavior and promoting a culture of corporate and
social responsibility.

 Defining key relationships between the organization and its stakeholders and other
key individual and organizations/groups.

 Appointing, setting targets in order to evaluate the performance of and reward as

appropriate, the Chief Executive Officer (CEO).

 Monitoring CEO and organizational compliance with the relevant federal, state and
local legislation and bylaws, and with the organization’s own policies.

 Providing advice and guidance to the CEO as required.

 Assessing risks facing the organization, establishing a risk management plan and
monitoring compliance.

 Evaluating the effectiveness as a board.

 Chapter 3:- Conclusion

Establishing a company is difficult but keeping it running properly is a next level thing. For
the proper running and wellness of business the BOD must take the steps very carefully. If
the steps are faulty then there might be problems which will harm the company eventually.
The roles and responsibilities must be properly carried out by the BOD which will make
ensure the existence of the company.Directors attend board meetings, evaluate management
performance, tend to major decisions (such as making acquisitions or selling the company),
declare dividends, create stock-option policies (including approving grants to key managers)
and establish executive compensation packages etc. which must be carried out and are
essential for the company.
Bibliography
Investing Answers. (n.d.). Retrieved from https://investinganswers.com/financial-
dictionary/businesses-corporations/board-directors-4871
Research gate. (n.d.). Retrieved from
https://www.researchgate.net/publication/283296349_The_Relationship_of_Board_C
omposition_to_Company_Performance_in_Small_and_Medium_Sized_Family_Firms
_A_Theoretical_Model/download