HomeRoots Pitch Deck | Investor Insights | April 2024
Lec-9 Management of Company.pptx
1. Subject: INTRODUCTION TO
BUSINESS
Topic: Management of Company
Chapter No. 9
Instructor Ms. Nimra Iqbal
Course Code: MGT-101
Credit Hours: 3(3-0)
Class: BS 1st (IBF)
GC Women University Faisalabad
2. Company Management
• Company as a legal person.
• Separate entity
• It can buy and sell property in its own name
• Due to artificial person so it has not physical existence.
• The working of company is not automatic so it is
managed by some natural persons who are collectively
known as management.
3. Company Management
• Its management is divided into three groups.
• 1 (Shareholders, board of directors, and chief
executive)
• 2 (managers of various departments, like purchase,
production, sale, finance, personnel/HRM and so
on.) It also include immediate sub-ordinates in
various departments. Subordinates may be quality
controller, advertising in-charge, recovery manager,
and so on.
• 3 (superintendents, foremen, supervisors,
accountants and other officers.)
4. Company Management
• BOD has all the powers of management.
• The board can delegate some powers to the chief
executive who is usually a shareholder of the
company.
• The Chief executive may be called the managing
director or general manager. He look after the
business on daily basis as per policies framed by the
board. He is assisted by the departmental
managers. They perform their duties under the
guidance and control of chief executive.
• Moreover there is a secretary, legal adviser and an
auditor. They also assist the management for
effective working of company.
5. Company Management
• The shareholders elect the directors to run the
business. The elected directors are collectively
known as board of directors. The board can appoint
persons for their help such persons are employees
of the company.
• The directors are usually shareholders. Therefore
some owners and some employees collectively
manage the affairs of the company. All shareholders
cannot take part in the management of even they
have right to manage the company.
6. Company Management
• What is minimum number of directors?
Every single member private company, other
private company, unlisted company and listed
public company shall have at least one, two,
three and seven directors respectively.
7. Company Management
• Directors are usually elected by the shareholders
and some times nominated by the debenture
holders, creditors and the government.
Shareholders
Auditors
Board of Directors
Legal Advisor Chief Executive Secretary
Production Purchase Sales HRM/Personnel Finance
8. Company Management
• Chief Executive
• The chief executive is usually one of the directors.
• He is appointed to exercise certain powers which
otherwise cannot be exercised.
• He has the whole of the powers of management of
the business matters.
• He executes the policies of the company.
• He may be a member or employee of the company.
• He is responsible for routine business matters in
running the company.
9. Company Management
Duties of Chief Executive
• He determines operation policies in order to achieve company
objectives.
• He applies all decisions of the board of directors and reports the
results.
• He plans organization structure to make the management more
effective .
• He looks after routine business matters on daily basis. He organizes
employees with he help of personnel management.
• He arrange training and promotion of managerial staff for
management development.
• He supervises and control over production and sales.
10. Company Management
Duties of Chief Executive
• He supplies latest information to directors about business
affairs.
• He maintains sound financial position through collection
and management of funds.
• He attends all ceremonial functions of company.
• Prepares and approval of estimates of future output
though budgets.
• Set up a research and development programmed for
production and design of goods.
• Explore new markets for creating customers.
• Make good relations with employees and general public.
11. Company Management
• Director definition
• Director includes any person occupying the position of
a director, by whatever named called.
• Powers of Directors
(1) To make calls on shareholders in respect of money
unpaid on their shares.
(2) To issue shares.
(3) To issue debentures and participation term certificates
(4) To borrow moneys otherwise than on debentures.
(5) To invest the funds of the company
(6) To make loans
(7) To declare interim dividend
(8) To approve the bonus to the employees
