A board of directors plays an important part in the management of a corporation. The board is comprised of people with different backgrounds and talents who are not connected to the management team of the company or its members. They are completely independent of the daily management activities of the business and can offer a fresh perspective to any strategic challenges that may arise.
The primary role of a corporate board is www.boardroomnow.info/working-board-vs-governance-board to determine the company’s vision, mission, and goals. The majority of the time, this is done in conjunction with the CEO or the general manager of the company. The board can also assist the business achieve its goals by establishing strategic policies and a risk management program. Additionally, the board can offer the company invaluable business contacts and networks.
Another essential duty of a board is to ensure the company is legally governed and operates in accordance with its stated mission and purpose. This includes ensuring the board understands the legal documents of the company, including articles of incorporation and bylaws, and applications for tax exemption status. The board also ensures that the company adheres to its legal reporting requirements.
The board is also responsible for the hiring of the CEO, determining his compensation and directing management. The board is also accountable for overseeing the financial statements of the company and aiding the chief financial officer to design short-term and long-term company strategies that are based on SWOT analysis. The board is also responsible for assessing its own performance, and providing leadership training to the members of the board.