A board of directors plays an important role to play in the governance of a corporation. It is made up of individuals with a range of experience and expertise who are not affiliated with the company or its management team. This means they operate independent of the day-to-day management activities of the company, providing a fresh perspective on strategic issues that may arise.
The primary purpose of a corporate board is to set the organization’s vision, mission, and goals. This is usually decided in conjunction with the CEO or general manager of the business. The board will also aid the company in achieving its goals through the development of strategic policies and a strategy for managing risks. The board can also provide valuable contacts and networks for the company.
Another crucial role of the board is to ensure that the company is operating legally and in line with its stated mission and goals. This includes ensuring that the board is equipped with a strong knowledge of the company’s documents that govern the organization, such as articles of incorporation, bylaws, and applications for tax-exempt status. The board makes sure that the business adheres to its legal reporting requirements.
The wikipedia reference board is also responsible for the hiring of the CEO, determining his compensation and directing the management. The board is also accountable for overseeing the financial statements of the company and aiding the chief financial officer develop short- and long-term company strategies based on SWOT analysis. In addition, the board is responsible for evaluating and assessing its own performance and providing the necessary leadership training to all members.