Which of the following statement is correct?
(a)In a unitary board system the activities and processes of governance and management are overlapping
(b)In a unitary board system the activities and processes of governance and management are compartmentalized
(c)In a two-tire board system the activities and processes of governance and management are overlapping
(d)In a two-tire board system the activities and processes of governance and management are semi-dependent
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Answer:
first one is correct
Explanation:
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In a unitary board system, the activities and the process of governance and management are overlapping.
Explanation:
- In a unitary board structure, there is single board of directors comprising executive and non-executive board of directors.
- Non-executive board of directors may be independent and work autonomous. They will act in the interests of their wider shareholder population.
- Under two tier structure, there may be board of directors, shareholders, employees other trade unions, providers of finance.
- Under the unitary board structure, the governance and management activities are overlapping and are considered by a single group of directors.
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