00:01
Discuss the merits of the following statement.
00:04
Inside directors should constitute the majority of a corporate board because insiders have superior understanding of the firm's business operations.
00:11
What evidence can you cite in support and opposition to this assertation? the obvious one is that if we have too many inside directors, they're not necessarily objective in their decisions because they're too close to it.
00:25
But let's take a look at this.
00:31
A corporate board are members that are elected by company stockholders acting as their represent.
00:36
For establishing corporate management policies, and they should be able to make decisions for the company, look after company's financial well -being, c -suite executive recruitment and compensation, company dividend policies, and as well, to some extent, help corporations set their goals and objectives.
00:53
The structure of any board varies from company to company.
00:56
However, the structure is determined by the organization's bylaws.
01:00
The ideal size of a board is seven members.
01:03
Really you just, you want enough members to get good input from people and have good debate, but not so many members that there's like too many cooks in the kitchen, so to speak.
01:13
You always want an odd number because you don't ever want to end up in a tie...