Directors responsibility - Coursework Example

Another notable aspect is that the board acts as the epicentre of the organization and it links the investors and the individuals responsible for implementing the policies that make their respective organizations tick as well as ensuring accountability. Thus, corporate governance in this case refers to “rigorous supervision of the management of a company; it means ensuring that business is done competently, with integrity and with due regard for the interests of all stakeholders,” (Institute of Directors, 2014).

Simply put, the Institute of Directors (2014) also posits to the effect that corporate governance relates to a combination of the following factors: legislation, non-legislative codes, self-regulation and best practice, structure, culture, and board competency. The operations of various organizations especially in the UK are guided by the legal framework obtaining in that particular country. Such laws are designed to protect the interests of different stakeholders with an interest in a business entity.

McGregor (2000) aptly suggests that that corporate governance is practiced at different levels and the law is specifically designed to protect the interests of all the stakeholders involved. Duplessis (1999) concurs with this assertion when he states that the law overrides all individual interests. In as far as Company law is concerned in UK, it can be seen that the board of AstraZeneca acted in accordance to the laws. According to Company Law Solutions Limited (n.d), “the directors have such powers as are conferred on them by the articles of the company which are especially based on the Model Articles (companies registered post 1.10.2009.

” This is promulgated by the Company’s Act 2006 which further stipulates that “the business of the company shall be managed by the directors who may exercise all the powers of the company..”