What is the Board of Directors and what role does it play in a business?

What is a Board of Directors? In a company, what role does the board of directors play and what powers does it have? What kind of companies will have a board of directors? To fully answer each question about the board of directors, please refer to the following information with Yes Office.

What is the Board of Directors?

The Board of Directors is understood as the agency that manages the company's operations. The Board of Directors can also make decisions in the name of the company or exercise the rights and obligations of the company that do not fall under the authority of the General Meeting of Shareholders.

Only joint stock companies have a Board of Directors. According to the structure, in a joint stock company, the top leader will be the General Meeting of Shareholders, followed by the Board of Directors. Thus, the highest decision-maker in a joint stock company is the General Meeting of Shareholders.

What are the rights and duties of the Board of Directors?

Each department and agency in the company will have different rights and obligations. Talking about the rights and obligations of the Board of Directors are:

• Making decisions on strategy, development plans and annual business plans of the company ty.
• Has the right to make recommendations on the types of shares and total number of shares offered.
• The right to decide to offer new types of shares of the company within the number of shares allowed to be offered for each type. Besides, there is also the right to mobilize capital in other forms.
• The right to decide on the offering price of the company's shares and bonds ty.
• Right to decide on share repurchases in accordance with regulations.
• The right to decide on the company's investment plans and projects within its authority.
• The right to decide on the solutions for market development, marketing and technology in accordance with the clear provisions in Clauses 1 and 3 of Article 120 of the Enterprise Law.
• Rights for new appointment, dismissal, dismissal, signing of contracts or termination of contracts with the director, general director or other important managers in the company according to the company's Charter.
• Authority to supervise and direct the director, general director or company manager on daily work.
• Decide on the organizational structure, internal management regulations of the company, make decisions on establishing subsidiaries, branches or representative offices...
• Propose the reorganization, dissolution or bankruptcy of the company.
• Additionally, other rights and duties are granted. clearly stipulated in the Enterprise Law and the Company's Charter.

To better understand the rights and obligations of the Board of Directors, you should learn more specifically in the Enterprise Law and the Company's Charter okay.

Regulations on the term and number of members of the Board of Directors

According to regulations, the number of members of the Board of Directors is not less than 3 and more than 11. The term of the Board of Directors is 5 years, the term of Members of the Board of Directors cannot exceed 5 years. Also according to regulations, members of the Board of Directors can be re-elected for an unlimited number of terms.

In case there is an additional member elected to the Board of Directors or to replace a member who has been dismissed or dismissed during the working term, the term of that member will be equal to the remaining term of the Board of Directors term. As a member of the Board of Directors, that person is not necessarily a shareholder of the Company.

Relationship of the Board of Directors with the Board of Directors

Relationship with the Board of Directors What is Board of Directors? As usual, the Board of Directors should neither interfere in the daily affairs of the Board of Directors. However, there is no shortage of cases where HQT wants to encroach on power and act in place of the Board of Directors, especially in small-scale companies and family-owned companies. Besides, there are also many cases where the Board of Directors is elected just for show and does not fully exercise its powers. 

What are the powers of the Chairman of the Board of Directors?

The head of the Board of Directors is the Chairman of the Board of Directors, so what powers does the Chairman of the Board of Directors have?

• Establishing programs and activity plans of the Board of Directors.
• Prepare and organize meeting agendas, documents, and content. Convene and chair meetings of the Board of Directorsvalue.
• Organize the notification through decisions of the Board of Directors.
• Supervise the process of organizing and implementing the decisions of the Board of Directors.
• Acting as chairman of the General Meeting of Shareholders east.
• Along with other rights and duties in accordance with the provisions of the Enterprise Law and the Company's Charter.

So What is the Board of Directors, what rights and obligations are clearly stipulated in the Enterprise Law and the Company's Charter. You can refer to full information here. If you want to establish a business and need advice, please contact Yes Office directly.

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In addition, if you want to establish a company, you need the following preparation steps:

•  You complete the procedure to register a company with the Department of Planning and Investment.  
•  You need an address to register as a company headquarters. This must be a private home or virtual office address, cannot use an apartment address.
•  After establishing the company company, you need to periodically declare taxes to the General Department of Taxation (quarterly), regardless of whether your company generates revenue or not.
• You need to invest in marketing, to find new customers and develop a sustainable business. You need a brand identity (name, logo, color, symbol, slogan...) and supporting digital marketing solutions (setting up a website, running Google, Facebook ads, SEO, investing in Content Marketing, Email Marketing...).

Yes Office virtual office service always accompanies you to solve the above problems.

• When completing company registration procedures, Yes Office helps you complete the procedures The state is cumbersomecomplicated. You just need to pay us the correct amount as the business registration fee with the General Department of Taxation (there is a red invoice from the Tax Department if you need to compare). As for the service fee, we would like to give it to you.
• You don't need to rent a large space, you just need to rent a virtual office to establish a company. The cost of renting a virtual office is very reasonable. Yes Office is located in a prime location, right on Nguyen Hue flower street, district 1, with the address 68 being a feng shui number.
• Yes Office always has tax experts with many years of experience to give FREE advice to your young company. When you rent a virtual office at Yes Office and also use our tax services, every tax declaration process becomes even more convenient.  
• We have many years of experience in designing SEO-standard websites, building brand identities, and implementing effective digital marketing activities through Google and Facebook channels, bringing great economic efficiency to businesses.

Please contact us immediately for free consultation via hotline: 0942 688 339.