ABC International Ltd. was incorporated in 1968 as a manufacturer of electrical components and telephone equipment in Hong Kong. In 1979 ABC entered into a joint venture with an Australian group in...

CASE: ABC INTERNATIONAL LTD
Executive Summary
In the cu
ent report the details about the role, duty and rights of a member of the board of director; an audit committee has been discussed in details. The report opens with a small introduction to the topic, followed by a detail section, which offer in depth details about the role, the rights and the duties of a manager, in addition to which ABC International Limited’s organisational context is included, keeping in mind the offer made to Mr. Chan, who is given the offer of joining the organisation. Furthermore, the report presents the roles, duties and rights of the audit committee member, aligning the condition of the chosen organisation in order to hint at the potential future of being a part of the organisation. In the following part, the report presents the accountability and transparency of ABC International Limited. Based on the range of available data a logical and precise conclusion is provided at last.
Table of Contents
Introduction    4
1. Duties, Rights and Competences of a Director    4
2. Significance and Nature of Committee Work    5
3. Board Structure and Styles in an Organisation    6
4. Transparency and Accountability of ABC International Limited    7
Conclusion    8
References    9
Introduction
Despite being positioned as a part of the upper management, each designation within an organisational structure have their exclusive roles and taking up a role, without comprehending the true implication of the job profile could become a matter of grave concern. It is found that a proper knowledge of the role of a manager helps in proper functioning and actions, while a lack of knowledge leads to e
or of judgement and wrong decision-making, resulting in loses. Although the directors of any organisation do not take part in production process and instead they make policies, evaluate them and take decisions for the organisations, which require high sense of responsibility and knowledge, which the cu
ent report discusses with special reference to ABC International Ltd.
1. Duties, Rights and Competences of a Directo
Director of a company makes the decision relating to the management, strategies and action, keeping in mind the interest of the shareholders of the company in a sustainable context. Managers perform either solo or in groups and considering the risk of personal fancy over rational decision making and
inging in argumentative tone, instead of one, a board of directors are appointed.
Firstly, it is the duty of a director to make independent comments on a discussed topic in the board. As supported by Shanahan (2019), it is expected that directors make independent and unbiased comment, so that realistic evaluations can be made. Secondly, a director must exert their power for the benefit of the company and avoid the use of power for any personal issues or interests. Thirdly, as suggested by Hoseini, Safari Gerayli and Valiyan (2019), a director must use their experience, knowledge and skills for the promotion of the success of the respective company. Lastly, a director must take the responsibility to take decisions for the entire organisation, although in case of board of directors the majority of the board’s vote wins.
In terms of the rights enjoyed by a director, it has to be mentioned that a director can vote for and against a candidate of their choice, without giving justification of the choice made. However, a director has the right of casting only one vote. In addition, the directors of a company can propose changes in the organisational policies with the support of rational arguments and can offer solutions through alternatives. As stated by Xing, Duan and Hou (2019), directors have the right to elect and deject chairperson of a company and can also regulate transfer of company shares. Directors of an organisation have the right to resign at any given point of time.
In terms of the competencies of a director of a company, it has to be mentioned that a humble behaviour that aligns formal as well as professional conduct is required to generate a sense of authority. A director must have management skills, experiences and knowledge in the industry they are a part of. A director, as noted by Caluwe and De Haes (2019), must have governance skills and diplomatic qualities, so that during board meetings the most profitable aspects of business can be argued and established. Considering the fact that ABC Ltd has asked Mr. Chan to become a director of the company, it is necessary that he considers his knowledge in the electronic device industry, academic knowledge of commerce, and experience of his career. It is also expected that Mr. Chan express his viewpoints and support it through argument. It is also expected that Mr. Chan will get the chance of voting his preferences, suggest changes in the...