The paper "Directors Should Not Be Held Responsible for the Financial Position of a Company" is an outstanding example of a management assignment. The main responsibilities of the board of directors involve determining the strategic policies and objectives of the company and monitoring the company's progress in achieving the policies and objectives. Along with appointing the senior management, they also account for the activities of the company to the relevant parties such as shareholders. Hardi and Buti (2012) by summarizing the work of many others claimed that although the directors are not involved indirectly in the company operations, they have the power to influence the operations.
Following this, the failure or success of any company directly reflects the ability of the directors in performing their duties in the running of the organization. It is essential for directors to understand that they are subject to statutory duties personally in their capacity as the company's directors. Additionally, companies as separate legal entities are subject to statutory controls, and it is the responsibility of their directors to ensure that they comply with such statutory controls. For instance, Murray Goulburn which is one of the leading milk producers not only in Australia but the world is alleged for misleading the investors.
This is after giving financial information that does not reflect the fair value of the organization since there were some material misstatements. Although there are some people who may argue that the directors should not be held responsible for such mistakes, this should not be necessary for the case. Directors in every organization have the capacity to influence the process, including financial reporting and investing decisions. The finance director has the overall responsibility and control on all financial aspects and is anticipated to analyze the figures and make recommendations basing on the findings.
Further, it is the responsibility of the Director to lead and manage the team through difficult periods such as month and year-end as well as during the annual budgeting. In periods of growth and change, the director should coordinate the corporate finance, at the same time managing the company’ s policies on capital requirements, equity, acquisitions, taxation and debt as appropriate.
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