Board of Governors - Explained
What is a Board of Governors?
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What is a Board of Governors?
A board of governors refers to a set of individuals who are in charge of managing the effective running of an organization. This group of people supervise the operations and activities of a business or an organization and ensures its mission and goals are achieved. The board of governors is the decision-making body of an organization or institution. Private businesses, public agencies, enterprises, and organizations can have a board of governors. For government institutions or regulatory bodies, the government appoints the board of governors to oversee the activities of the institutions. In schools and colleges, board of governors also exists.
How Does a Board of Governors Work?
Professional organizations, non-profit/non-governmental organizations, academic institutions, and government agencies assign boards of governors. The Federal Reserve of many countries also has board of governors who are individuals that supervise and manage the affairs of the Federal Reserve. The board of governors of Federal reserves is often appointed by the government. In the United States, the President appoints the board of governors which comprises seven individuals, who are professionals that represent the financial, agricultural, industrial, and commercial interests and geographical segments of the country. The appointed individuals are then confirmed by the Senate before they can start their terms. The term duration for the appointed members is 14 years.
Duties of the Federal Reserve Board of Governors
The duties of the Federal Reserve Board of Governors include the following;
- Monitoring, supervising and regulating the activities of the Federal Reserve Banks.
- Ensures that credit protection laws for consumers are upheld.
- Analyzing economic development at the domestic and international levels.
- Time regulation and modification of reserve requirements when necessary.
- Supervision and regulation of banks and the entire financial institution.
- Approval of changes in discount rate initiated by any Federal Reserve Bank
In the United States, there are 12 seats on the Federal Open Market Committee (FOMC) occupied by the seven board of governors while the other five seats are occupied by five out of the 12 regional reserve banks. FOMC is responsible for monetary policy in the United States and oversees the entire monetary policy actions in the country.
- Corporate Governance Law (Intro)
- What is Business Governance?
- Berle-Means Thesis
- Corporate Governance Rating Definition
- Who are the members of a corporation?
- Corporate Charter
- Shareholder Register
- Common Stock
- Preferred Stock
- Par Value
- Authorized Shares
- Issued Shares of Stock
- Unissued Shares of Stock
- Outstanding Shares
- Institutional Shares
- Dual Class Shares
- What is a closely-held corporation?
- Close Corporation Plan Definition
- What is a Private Company vs a Public Company?
- What is the role and purpose of the corporation?
- What is the Agency theory of corporate governance?
- Shareholder-Centric Perspective
- Shareholder Value
What is the Stakeholder theory of corporate governance?
What is the role & rights of Shareholders in the corporation?
- Shareholder Democracy Definition
- Quorum Definition
- Class Voting Shareholders
- Changing the Voting Rules
- Supermajority (Voting)
- Shareholder Sponsored Proposal
- What are the variations on attributes of Ownership structure?
- Stock Split
- What are the fiduciary duties owed by shareholders?
- When is a shareholder personally liable for corporate obligations?
- Appraisal Rights
- Dissenter's Rights
- Say on Pay Rights
- How can shareholder enforce their rights (direct and derivative actions)?
- What is the process for bringing a Derivative action?
- What are corporate vote Proxies?
- Proxy Statement
- Proxy Fight or Contest Definition & Explanation
- What is Shareholder Activism and the significance of Institutional Investors?
- Activist Investor
- Overview of Board of Directors
- Board Decision Making
- Advisory Board (Observer Directors)
- What is the role of the Board of Directors?
- Board of Trustees
- Board of Governors
- Outside Director
- Outside Director or Non-Executive Director Definition
- Independent Outside Director
- Budget Committee
- Audit Committee
- Compensation Committee
- Nomination Committee (Corporate Board)
- What standards govern the actions of the board of directors?
- Duty of Candor Definition
- Board Evaluation Definition
- What is the Business Judgment Rule?
- What is D&O insurance?
- Codetermination (Foreign)
- What is the role of Managers of the corporation?
- What standards govern manager actions?
- Chief Executive Officer (CEO)
- Chief Financial Officer
- Chief Information Officer (CIO)
- Chief Investment Officer (CIO)
- Chief Legal Officer
- Chief Operating Officer
- Chief Risk Officer
- Chief Security Officer
- Chief Technology Officer (CTO)
- What are the primary state and federal corporate governance laws?
- What is the role of the state in corporate governance?
- What is the role of Securities Laws in corporate governance?
- What is the role of the Foreign Corrupt Practices Act in corporate governance?
- What is the Sarbanes-Oxley Act (SOX) effect on corporate governance?
- Sarbanes-Oxley Act (SOX)
- What is the Dodd-Frank Wall Street Reform and Consumer Protection Act effect on corporate governance?
- Corporate Monitors
- What industry organization standards affect corporate governance?
- How do proxy advisory firms affect corporate governance?
- What is the role of ethics in corporate governance?
- What are the major causes of corporate governance issues?
- What are the access to information issues?
- What are decision-making structure issues?
- What are the power struggle or competition issues?
- Holding Company
- What are hostile takeovers and defenses to hostile takeovers?
- Williams Act
- Staggered Board
- Delay-Tactic Defenses?
- Legal Lockup Defenses?
- White Knight and Pac Man Defenses?
- Jonestown Defense
- Lady Macbeth Strategy
- Macaroni Defense
- Yellow Knight
- Back-end Plan Definition
- Backflip Takeover Definition
- Dead Hand Provision Definition
- Kamikaze Defense
- Operating Company Property Company Model
- Scorched Earth Policy Definition
- Revlon Rule
- What are benefit-alignment issues?
- Cadbury Rules Definition