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www.eiod.org October - December 2010 Magazine publishedby EIoD October -December2010Issue12 Not for Sale for Not Executive Director’s Letter MANAGEMENT AND BOARD: A POINT OF STRENGTH OR WEAKNESS The relationship between Boards and management is one of the main reasons for success or failure of companies. Moreover, board-management relationship has direct impact on the future of companies and their ability to protect shareholders rights. Hence the Egyptian code of corporate governance covers this relationship in a detailed manner. I may not be exaggerating if I say that that this relationship is one of the major challenges facing companies that EIoD sees evident in dealing with various types of businesses. Basically, the General Assembly, GA, or owners of the company elects the board to oversee the executive management, and to make sure that the company has all the ingredients for success, including internal controls, risk management, strategic management, and all the other systems and work procedures. The board is also responsible for the appointment of a CEO, or the top executive, and determines overall goals and achievements expected from the management. Furthermore, directors use their relationships with various stakeholders to support the company’s activities and to open new markets. The General Assembly is to monitor and evaluate the Board performance, and decides whether to keep it, to change some of its members or to change it completely. Therefore, it is important that the GA members are not themselves company directors. If this is the case, it means that the board is accountable to itself in the form of the GA.
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