1.4 The Role of the Board of Directors

The board's function's catalogue (the exam's list): (1) the strategy-and-direction (the vision's approval; the budgets-and-plans); (2) the appointments-and-oversight (the MD/CEO's hiring- and-firing; the KMPs' supervision — Unit 6); (3) the policy-and-risk (the internal controls, the compliance architecture); (4) the big transactions' approval (the major investments, the borrowings-and-guarantees within the caps, the related-party faces); (5) the accounts-and- disclosure's ownership (1.8); (6) the stakeholders' interface (the CSR of Unit 5); (7) the succession-and-integrity (the board's own renewal). The role's theory: the board directs but does not manage — the non-executive's question-and-answer vs the executive's operation (the two-tier's contrast in 5.5).