Explanation : A decision to venture into new markets would increase the company's
revenue and profits which is in the interest of both shareholders and
employees. In a takeover scenario, the management may fear losing their
employment; however, the offer may be attractive for shareholders.
Similarly, a proposal to redraft the bonus structure can create a conflict in
that shareholders would want to reduce expenses whereas the
management would want higher bonuses.
Explanation : The board of director's responsibility is to protect shareholder interests
and ensure the management works in the best interest of shareholders.
Protecting management interests in front of shareholders is not a
responsibility of the board.