CORPORATE

STRUCTURE
T
TOPIC Outline
 Introduction

 The Corporate Structure

 Roles of each position

 Dividend Policies

 Summary

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 Introduction
Corporate structure refers to the organization of different
departments or business units within a company. Depending
on a company’s goals and the industry in which it operates,
corporate structure can differ significantly between companies.
Each of the departments usually performs a specialized
function while constantly collaborating with each other to
achieve corporate goals and values.

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Corporate Organization Structure

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 Roles of each
Position

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Shareholders
• The shareholders elect the Board of Directors (BOD). Each
share held is equal to one voting right. Since the BOD is
elected by the shareholders, their responsibility is to carry
out the objectives of the shareholders otherwise, they would
not have been elected in that position

Board of Directors
• The board of directors is the highest policy making body in a corporation. The board’s
primary responsibility is to ensure that the corporation is operating to serve the best
interest of the stockholders. The following are among the responsibilities of the board of
directors:
• - Setting policies on investments, capital structure and dividend policies.
• - Approving company’s strategies, goals and budgets.
• - Appointing and removing members of the top management including the president.
• - Determining top management’s compensation.
• - Approving the information and other disclosures reported in the Financial Statements
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 Roles of each
Position

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President (Chief Executive Officer):
• The roles of a president in a corporation may vary from one company to another. Among
the responsibilities of a president are the following: - Overseeing the operations of a
company and ensuring that the strategies as approved by the board are implemented as
planned.
• - Performing all areas of management: planning, organizing, staffing, directing and
controlling.
• - Representing the company in professional, social and civic activities.

VP for Marketing
The following are among the responsibilities of VP for Marketing - Formulating
marketing strategies and plans.
• - Directing and coordinating company sales.
• - Performing market and competitor analysis.
• - Analyzing and evaluating the effectiveness and cost of marketing methods
applied. - Conducting or directing research that will allow the company identify
new marketing opportunities, e.g. variants of the existing products/services
already offered in the market.
• - Promoting good relationships with customers and distributors
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 Roles of each
Position

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VP for Production
• The following are among the responsibilities of VP for Production: - Ensuring production meets
customer demands.
• - Identifying production technology/process that minimizes production cost and make the
company cost competitive.
• - Coming up with a production plan that maximizes the utilization of the company’s production
facilities.
• - Identifying adequate and cheap raw material suppliers.
VP for Administration
The following are among the responsibilities of VP for Administration:
- Coordinating the functions of administration, finance, and marketing
departments. - Assisting other departments in hiring employees.
- - Providing assistance in payroll preparation, payment of vendors, and collection
of receivables.
- - Determining the location and the maximum amount of office space needed by
the company. Identifying means, processes, or systems that will minimize the
operating costs of the company.

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 Dividend Policies

D
• Recall that cash dividends are paid by corporations to
existing shareholders based on their shareholdings in
the company as a return on their investment. Some
investors buy stocks because of the dividends they
expect to receive from the company. Non-declaration
of dividends may disappoint these investors. Hence, it
is the role of a financial manager to determine when
the company should declare cash dividends.
• Before a company may be able to declare cash
dividends, two conditions must exist:
• 1. The company must have enough retained earnings
(accumulated profits) to support cash dividend
declaration.
• 2. The company must have cash.

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 Summary
Different organization have different corporate
structure and each member perform different roles
and functions.
Dividend Policies is concern with the company
enough retained earnings (accumulated profits) to
support cash dividend declaration.