Case Sunbeam

4. How should a board make sure that it gets the information it needs to monitor managmenet actions and accounting policies

Board of Directors have a fiduciary duty to safeguard the organization’s assets and the shareholders’ investments in the business. Apart of that fiduciary duty include responsibilities of monitoring the business to ensure that the business is successful, and selecting and compensating the senior executive team. As a board of director, it is important to monitor the management team in order to ensure that the management team is upholding their fiduciary duty to act within the interest of the business and not for self-interest. The Board of directors should implement policies from the beingin that will ensure theit duty to inquir and monitor is being upheld. The Board of directors should:

Independent directs on the board

SeparTION of CEO and Chait

Select 2 independendt meebers as the chair of the board and the CEO of the company. In some organizAtions the the CEO and the Chairman of the boad are usually the same person. This is a conflict of interest as the user that also is involved in the day to day operations controls the board of director meetings and is given the power to withhold and provided certain information to the rest of the board of directors. This will allow for easier manilpialtion on the CEO executive’s side since he can control what information inregards to the business’s operation is provided to the board. This will ensure the CEO and the Chair of board of directors independence and prevent any future conflict of interest.

Ensure independence of internatl and externa auditor

Establish committes that work in the interst of the board of directors team and not the executive team, so that the committees can review and assess their own internal auditor on the corporation

* Board of Directors supported by Audit Committee

* General management and Executive Committee

* Risk Management Committee

*...