In the management hierarchy of some legal entities, there is a collective body for the operational management of their activities – the board. Nevertheless, it is headed by the sole head – the chairman of the board.
Duties of the chairman of the company
The following tasks are included in the range of duties of the chairman of the company:
- Heads and manages the work of the board and all types of activities of the enterprise, which are determined by the charter and not prohibited by the current legislation, on all issues, except for those that are subject to the competence of the general meeting and the supervisory board.
- Through the boards and heads of structural divisions, he carries out operational management of the enterprise, organizes efficient and stable work, directs activities to achieve the required pace of development and profit.
- Organizes the financial products and economic activities of the enterprise, ensures dynamic economic and social development, implements the decisions of the general meeting and the supervisory board.
- Provides perspective and current directions of activity of the enterprise concerning product development, its expansion, reconstruction, and technical re-equipment.
- Creates and effectively implements investment projects, organizes the introduction of new equipment and advanced technologies into production, improves the management system and motivational mechanisms.
- Organizes the fulfillment of contractual obligations, the quality of work performed and products manufactured, compliance with industrial, technological, and labor discipline, the implementation of environmental programs.
- Ensures the development, conclusion, and execution of all the terms of the collective agreement creates organizational and economic conditions for highly productive and safe work at the enterprise.
- Ensures the submission of official statistical reporting and quarterly and annual reporting on the results of the enterprise in the prescribed manner.
- Adheres to confidentiality in working with official documents and ensures the protection of information that is an official or commercial secret of the enterprise.
Organizes board meetings and acts without a power of attorney on its behalf.
Knows, understands, and applies the current regulatory documents relating to its activities.
Knows and fulfills the requirements of regulatory acts on labor and environmental protection, complies with the norms, methods, and techniques for the safe performance of work.
Are the chairman of the board and the CEO the same thing?
In the UK, as in other countries that promote segregation of duties, this is seen as necessary for the independence of the board of directors, since the chairman of the board and the CEO of the company have different tasks.
The CEO leads the company, the chairman – the board of directors, and in addition to carefully monitor the activities of the CEO. If by one of its functions, it must be the chairman of the board of directors and the general director, the same person performs, then it is much more difficult for the board to critically evaluate the work of the general director and express an independent opinion on this matter.
The chairman of the board of directors, who does not perform the functions of the CEO, is more prone to analysis and is open to discussing sensitive issues at board meetings, not least because he evaluates management proposals without prejudice. In a situation where the functions are combined, management has more opportunities to hide information from the board of directors (we are talking mainly about negative information), depriving it of the opportunity to have a reliable idea of business performance.
And of course, no one controls the activities of the CEO, except for himself.