Final answer:
The Board of Directors cannot delegate ultimate responsibility for the operation of a trust institution or company; it retains the ultimate accountability for overseeing management and ensuring operations are in the shareholders' best interests.
Step-by-step explanation:
The Board of Directors cannot delegate the ultimate responsibility for operating the trust institution or company and administering fiduciary accounts. The ultimate responsibility rests with the Board, as they are elected by the shareholders to oversee the management and ensure that the company operates in the shareholders' best interests. This includes oversight of strategic decisions, financial practices, and compliance with laws and regulations. The Board may delegate tasks to management, but it retains ultimate accountability.
Regarding the information provided, the given historical exercises relate to colonial governance structures, which in some respects mirror modern corporate governance but are in the context of colonial administration rather than a business setting. For example, colonial governors could veto legislation similar to how a board might override certain management decisions. However, in proprietary colonies, while the proprietors aimed to collect profits, they often had additional responsibilities, contrary to the idea that they had no responsibilities.