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Corporate Duties

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Running Head: Corporate Duties

Corporate Duties
Nicole Sherwood
BUS670: Legal Environment
Alexis Hooley
March 26, 2012

Abstract Corporations are intricate entities and require many people to aid in its success. The main groups that actively contribute to the corporation are the directors, officers, and shareholders. Each group is vital to the success of the organization.

A corporation is a company in the marketplace and is comprised of many people who have specific duties and responsibilities. All people who are part of the corporation are considered corporate people and are important to the day-to-day functioning of the corporation. Some corporate people are given duties that are necessary to achieve the mission of the organization. The key people within a corporation who are responsible for the mission of the organization are the directors, officers, and shareholders. The success of the corporation is largely due the work and success of these people.
Duties of Directors of Corporations Directors of a corporation are largely responsible for the day-to-day operations and the direct success of the corporation. The main duty of the directors is to implement control and management within the corporation and to ensure that all functions are carried out in a smooth manger (McNamara, 2008). Part of ensure this is to define the policies and procedures of the organization so that company employees understand what is expected of them and how they can achieve their goals and the mission of the corporation. The directors of a public corporation and a close corporation are very similar. However, in a public corporation there are more controls and oversight that prohibit the directors from changing policies or regulations (Mcnamara, 2008). They are more limited in their freedoms to make

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