A board of Directors plays an important role in management and governance of a business. The board is composed of individuals with diverse backgrounds and skills that are not a part of the management team of the company or its members. This means that they work independently of the day-today operations of the management team offering a fresh view on strategic issues that may arise.
The primary role of a corporate board is to set the organization’s vision objectives, mission, and values. This is usually decided in conjunction with the general manager or CEO of the business. The board will also aid the company www.boardroomnow.info/what-is-the-difference-between-oversight-and-management achieve its goals through the creation of strategic policies and a plan to manage risks. The board also provides valuable contacts and networks for the company.
Another important responsibility of a board is to ensure the company is legally governed and operates in accordance with the stated mission and goal. This includes ensuring the board understands the legal documents of the company, like bylaws and articles of incorporation and applications for tax exemption status. The board also ensures the company is in compliance with its legal reporting requirements.
Lastly, the board is accountable for hiring and setting the compensation for the CEO as well as managing the company’s management. The board also oversees the company’s financial statements and helps the chief financial officer to create long- and short-term strategies for the company that are based on a SWOT study. The board is also responsible for evaluating its own performance and delivering leadership training to all of its members.
