Corporate Board Effectiveness

The effectiveness of board control is a major tool of enhancing corporate
performance as this minimizes the unhealthier decisions made by the corporate
managers with selfish behaviours. Corporate governance often time starts with
power. It deals with people who control the organizations by holding enough power.
It also addresses how power is distributed, delegated and executed or exercised and
also the purpose of such power and what control mechanisms used by those who
hold power, Nyaki, (2013) According to Nyaki, (2013) as quoted; ‘’Those who have
powers also have the responsibility of decision making, the right to choose, and the
option to delegate. Power in a company is not absolute because it is always
exercised within guidelines or constraints. In public corporations, the purpose of
power is the creation of value, and the structure of shareholder owned corporations
means that the value created must be shared pg. 65’’. This chapter reviews board
control and its effectiveness in Tanzania.