03. Board of Directors: Duties and Liabilities - Quick Guide Series

8/6/2019 03. Board of Directors: Duties and Liabilities - Quick Guide Series

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8/6/2019 03. Board of Directors: Duties and Liabilities - Quick Guide Series

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QF\[IH\DADJD]DF\

]gf ai`rm ib mdrfltirs g`s ` mu`j c`hm`tf5

@mvdsiry5 lihsujt wdtg c`h`ofcfht rfo`rmdho str`tfodl `hm ipfr`tdih`j

mdrfltdih ib tgf licp`hy.

Ivfrsdogt5 cihdtir licp`hy pfrbirc`hlf `hm rfmulf `ofhly lists.

Fbbfltdvf ai`rms s`tdsby aitg buhltdihs.

]gf rfspihsdadjdtdfs ib tgf ai`rm `rf sfp`r`tf `hm mdstdhlt bric tgisf ibc`h`ofcfht. ]gf ai`rm mifs hit c`h`of tgf licp`hy.

IFLM [rdhldpjfs ib Lirpir`tf Oivfrh`hlf

]gf lirpir`tf oivfrh`hlf br`cfwirn sgiujm fhsurf tgf str`tfodl oudm`hlf ib tgf licp`hy, tgf fbbfltdvfcihdtirdho ib c`h`ofcfht ay tgf ai`rm, `hm tgf ai`rms `lliuht`adjdty ti tgf licp`hy `hm tgf sg`rfgijmfrs.

IFLM (1;;=)

8/6/2019 03. Board of Directors: Duties and Liabilities - Quick Guide Series

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QF\[IH\DADJD]DF\

\fjfltfm `mvdsiry `hm ivfrsdogt rfspihsdadjdtdfs5

@pprivf tgf lirpir`tf str`tfoy

]fst ausdhfss cimfj hm dmfhtdby nfy pfrbirc`hlf cf`surfs

Dmfhtdby rdsn `rf`s `hm ivfrsff rdsn c`h`ofcfht [j`h bir `hm sfjflt hfw fxflutdvfs

Mfsdoh fxflutdvf licpfhs`tdih p`ln`ofs

Fhsurf tgf dhtfordty ib puajdsgfm bdh`hld`j st`tfcfhts

@pprivf c`eir `ssft purlg`sfs [ritflt licp`hy ssfts hm rfput`tdih

Qfprfsfht tgf dhtfrfst ib sg`rfgijmfrs

Fhsurf tgf licp`hy licpjdfs wdtg j`ws `hm limfs

8/6/2019 03. Board of Directors: Duties and Liabilities - Quick Guide Series

4/18

DHMF[FHMFHLF

Ai`rms `rf fxpfltfm ti af dhmfpfhmfht5

@lt sijfjy dh tgf dhtfrfst ib tgf bdrc.

Brff bric lihbjdlts tg`t licpricdsf eumocfht.

@ajf ti t`nf pisdtdihs dh ippisdtdih ti c`h`ofcfht.

Dhmfpfhmfhlf ds mfbdhfm llirmdho ti rfouj`tiry st`hm`rms.

Giwfvfr, dhmfpfhmfhlf st`hm`rms c`y hit af lirrfj`tfm wdtg trufdhmfpfhmfhlf.

Qfqudrfs ` l`rfbuj fv`ju`tdih ib ai`rm cfcafrs adior`pgy, fxpfrdfhlf,prfvdius afg`vdir, `hm rfj`tdih ti c`h`ofcfht.

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I[FQ@]DIH\ IB ]GF AI@QM

[rfsdmfm ivfr ay lg`drc`h5 sfts `ofhm`, slgfmujfs cfftdhos, liirmdh`tfs`ltdihs ib liccdttffs.

Mfldsdihs c`mf ay c`eirdty rujf.

]i dhbirc mfldsdihs, ai`rm rfjdfs ih c`tfrd`js prfp`rfm ay c`h`ofcfht.

[frdimdl`jjy, dhmfpfhmfht mdrfltirs cfft iutsdmf prfsfhlf ib c`h`ofcfht(fxflutdvf sfssdihs).

Mdrfltirs rfpirt spfhmdho 1; giurs pfr cihtg ih

ai`rm c`ttfrs. _gdjf ` typdl`j cfftdho j`sts aftwffh1 `hm 2 giurs, sicf j`st `s jiho `s 7 giurs.

Lirpir`tf Ai`rm Cfcafr `hm [rdlfw`tfrgiusfLiipfrs (1;;4)

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AI@QM LICCD]]FF\

Hit `jj c`ttfrs `rf mfjdafr`tfm ay tgf bujj ai`rm. \icf `rf mfjfo`tfm tisualiccdttffs.

Liccdttffs c`y af st`hmdho ir `m gil, mfpfhmdho ih tgf dssuf `t g`hm.

@jj ai`rms `rf rfqudrfm ti g`vf `umdt, licpfhs`tdih, hicdh`tdho `hmoivfrhdho liccdttffs.

Ih dcpirt`ht c`ttfrs, tgf rfliccfhm`tdihs ib tgf liccdttff `rf ariuogtafbirf tgf bujj ai`rm bir ` vitf.

8/6/2019 03. Board of Directors: Duties and Liabilities - Quick Guide Series

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@VMD] LICCD]]FF

Qfspihsdadjdtdfs ib tgf `umdt liccdttff dhljumf5

Ivfrsdogt ib bdh`hld`j rfpirtdho `hm mdsljisurf

Cihdtir tgf lgidlf ib `lliuhtdho pijdldfs

Ivfrsdogt ib fxtfrh`j `umdtir Ivfrsdogt ib rfouj`tiry licpjd`hlf

Cihdtir dhtfrh`j lihtrij prilfssfs

Ivfrsdogt ib pfrbirc`hlf ib dhtfrh`j `umdt buhltdih

Mdsluss rdsn c`h`ofcfht pijdldfs

@umdt liccdttffs cfft ih `vfr`of

7 tdcfs pfr yf`r, bir 1.? giurs f`lg.

H@LM (1;0=)

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LIC[FH\@]DIH LICCD]]FF

Qfspihsdadjdtdfs ib tgf licpfhs`tdih liccdttff dhljumf5

\ft tgf licpfhs`tdih bir tgf LFI

@mvdsf tgf LFI ih licpfhs`tdih bir itgfr fxflutdvf ibbdlfrs

\ft pfrbirc`hlf-rfj`tfm oi`js bir tgf LFI Mftfrcdhf tgf `ppriprd`tf strulturf ib licpfhs`tdih

Cihdtir tgf pfrbirc`hlf ib tgf LFI rfj`tdvf ti t`rofts

Gdrf lihsujt`hts `s hflfss`ry

Licpfhs`tdih liccdttffs cfft ih

`vfr`of 2 tdcfs pfr yf`r, bir 1.? giurs f`lg.

H@LM (1;0=)

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HICDH@]DHO @HM OIRFQH@HLF LICCD]]FF

Qfspihsdadjdtdfs ib tgf hicdh`tdho/oivfrh`hlf liccdttff dhljumf5

Dmfhtdbdl`tdih ib qu`jdbdfm dhmdvdmu`js ti sfrvf ih tgf ai`rm

\fjfltdih ib hicdhffs ti af vitfm ih ay sg`rfgijmfrs

Gdrf lihsujt`hts `s hflfss`ry Mftfrcdhf oivfrh`hlf st`hm`rms bir tgf licp`hy

C`h`of tgf ai`rm fv`ju`tdih prilfss

C`h`of tgf LFI fv`ju`tdih prilfss

Hicdh`tdho/oivfrh`hlf liccdttffs cfftih `vfr`of 7 tdcfs pfr yf`r, bir 0.7 giurs

f`lg.

H@LM (1;0=)

8/6/2019 03. Board of Directors: Duties and Liabilities - Quick Guide Series

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\[FLD@JDUFM LICCD]]FF\

Fxflutdvf

Bdh`hlf / dhvfstcfht

Lirpir`tf rfspihsdadjdty

\tr`tfodl pj`hhdho

Qdsn

Fhvdrihcfht`j pijdly

\ldfhlf & tflghijioy

Jfo`j

Ftgdls / licpjd`hlf

Cfrofrs & lqudsdtdihs

Guc`h rfsiurlfs /c`h`ofcfht mfvfjipcfht

;% 0;% 1;%

8/6/2019 03. Board of Directors: Duties and Liabilities - Quick Guide Series

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MDQFL]IQ ]FQC\

]wi c`dh fjfltdih rfodcfs5

0. @hhu`j fjfltdih5 Mdrfltirs `rf fjfltfm ti ihf-yf`r tfrcs.

1. \t`oofrfm ai`rm5 Mdrfltirs `rf fjfltfm ti tgrff-yf`r tfrcs, wdtg ihf-tgdrm ib

ai`rm st`hmdho bir fjfltdih f`lg yf`r.

\t`oofrfm ai`rms rf `h fbbfltdvf htdt`nfivfr pritfltdih.

\t`oofrfm ai`rms c`y `jsi dhsuj`tf ir fhtrfhlg c`h`ofcfht.

[rfv`jfhlf ib \t`oofrfm Ai`rms @pprixdc`tfjy g`jb ib `jj puajdljy tr`mfm licp`hdfs g`vf ` st`oofrfm ai`rm.

\c`jj licp`hdfs `rf cirf jdnfjy ti g`vf ` st`oofrfm ai`rm tg`h j`rof licp`hdfs.

\g`rnQfpfjjfht (1;0=)

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MDQFL]IQ FJFL]DIH\

Dh cist licp`hdfs, mdrfltirs `rf fjfltfm ih ` ihf-sg`rf, ihf-vitf a`sds.

\g`rfgijmfrs c`y wdtggijm vitfs aut hit vitf `o`dhst ` hicdhff.

Biur c`dh vitdho rfodcfs5

[jur`jdty5 mdrfltir wgi rflfdvfs cist vitfs ds fjfltfm, fvfh wdtgiut ` c`eirdty.

C`eirdty5 mdrfltir cust `lgdfvf c`eirdty, itgfrwdsf cust tfhmfr rfsdoh`tdih.

Lucuj`tdvf5 sg`rfgijmfrs l`h piij vitfs `hm `ppjy ti sfjfltfm l`hmdm`tfs

(r`tgfr tg`h ihf vitf pfr l`hmdm`tf).

Mu`j lj`ss5 mdbbfrfht lj`ssfs ib sg`rfs l`rry mdbbfrfht vitdho rdogts

(mdspripirtdih`tf ti flihicdl dhtfrfst).

]ypdl jjy, ihjy ihf sj`tf ib mdrfltirs ds put birtg bir fjfltdih> dh ` lihtfstfmfjfltdih, ` mdssdmfht sj`tf ds `jsi put birtg.

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\]@]F LIQ[IQ@]F J@_5 JFO@J IAJDO@]DIH\

Vhmfr st`tf lirpir tf j`w, tgf mutdfs ib tgf ai`rm `rf fcaimdfm ay tgfprdhldpjf ib bdmuld`ry muty.

]gf muty ib l`rf rfqudrfs tg`t mdrfltirs c`nf mfldsdihs wdtg mufmfjdafr`tdih.

]gf muty ib jiy`jty rfqudrfs tg`t mdrfltirs `lt dh tgf dhtfrfst ib tgflirpir`tdih (Mfj`w`rf liurts g`vf dhtfrprftfm tgds ti cf`h dh tgfdhtfrfst ib sg`rfgijmfrs).

]gf muty ib l`hmir rfqudrfs tg`t tgf ai`rm dhbirc sg`rfgijmfrs ib `jjdhbirc`tdih tg`t ds dcpirt`ht ti tgfdr fv`ju`tdih ib tgf licp`hy.

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\]@]F LIQ[IQ@]F J@_5 JFO@J FHBIQLFCFH]

Bdmuld`ry mutdfs `rf fhbirlfm ay eumdld`j dhtfrvfhtdih5

Dheuhltdih5 liurt irmfr tg`t tgf ai`rm rfbr`dh bric ` spfldbdl `ltdih.

M`c`ofs5 rfqudrfcfht tg`t tgf ai`rm p`y bir jissfs sust`dhfm.

Vhmfr tgf ausdhfss eumocfht rujf, tgf liurt wdjj hit sflihm-oufss `ai`rms mfldsdih db5

0. ]gf ai`rm bijjiwfm rf`sih`ajf prilfss.

1. ]gf ai`rm tiin dhti `lliuht nfy rfjfv`ht b lts.

8/6/2019 03. Board of Directors: Duties and Liabilities - Quick Guide Series

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BFMFQ@J \FLVQD]DF\ J@_\5 JFO@J IAJDO@]DIH\

Vhmfr bfmfr`j sflurdtdfs j`ws, mdrfltirs g`vf ` jfo`j iajdo`tdih ti mdsljisfdhbirc`tdih ti tgf puajdl.

Mdsljisurf rfqudrfcfhts `rf fst`ajdsgfm ay tgf \flurdtdfs `hm Fxlg`hofLiccdssdih.

Dh ofhfr`j, tgf licp`hy ds rfqudrfm ti mdsljisf `jj c`tfrd`j dhbirc`tdih dhbirc`tdih tg`t `h dhvfstir wiujm lihsdmfr dcpirt`ht dh tgf fv`ju`tdih ib`h dhvfstcfht mfldsdih.

]gf ai`rm rfjdfs ih fxtfrh`j `hm dhtfrh`j `umdtirs ti fhsurf tg`t c`tfrd`jdhbirc`tdih ds `mfqu`tfjy mdsljisfm.

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BFMFQ@J \FLVQD]DF\ J@_5 JFO@J FHBIQLFCFH]

\flurdtdfs j`ws `rf fhbirlfm tgriuog prdv`tf j`wsudts `hm \FL `ltdihs.

[rdv`tf j`wsudts `rf jfm ay dhvfstirs wgi lj`dc ti g`vf affh g`rcfm ay` vdij`tdih.

Dh irmfr ti af biuhm dh vdij`tdih ib sflurdtdfs j`w, tgf liurt cust bdhm tg`t `mdsljisurf ti tgf puajdl liht`dhfm ` c`tfrd`j cdsst`tfcfht ir tgf icdssdihib c`tfrd`j dhbirc`tdih, `hm tg`t tgf cdsst`tfcfht ir icdssdih w`s tgfl`usf ib jiss.

@ mdrfltir l`hhit af gfjm jd`ajf uhjfss tgf cdsst`tfcfht ir icdssdih w`sdhtfhtdih`j ir tgf rfsujt ib rflnjfsshfss.

8/6/2019 03. Board of Directors: Duties and Liabilities - Quick Guide Series

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MDQFL]IQ DHMFCHDBDL@]DIH @HM DH\VQ@HLF

Mdrfltir jd`adjdty ds rfmulfm ay tgrff cflg`hdscs5

0. Fxlujp tiry privdsdih5 licp`hy lg`rtfr fxlusfs mdrfltir bric jd`adjdty bir

uhdhtfhtdih`j hfojdofht lts.

1. Dhmfchdbdl`tdih5 `orffcfht tg t licp`hy wdjj p`y bir lists `ssild tfm wdtg

j`wsudts (db mdrfltir `ltfm dh oiim b`dtg).

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ADAJDIOQ@[GT

IFLM. [rdhldpjfs ib Lirpir`tf Oivfrh`hlf. 1;;=.

Lirpir`tf Ai`rm Cfcafr hm [rdlfw`tfrgiusfLiipfrs. _g`t Mdrfltirs ]gdhn5 @hhu`j Ai`rm ib Mdrfltirs \urvfy. 1;;4.

H@LM. [uajdl Licp`hy Oivfrh`hlf \urvfy. 1;0=.

\pfhlfr \tu`rt. \pfhlfr \tu`rt V.\. Ai`rm Dhmfx. 1;0