The board of directors play an important role to play in the governance of a corporation. The board is composed of people with different backgrounds and talents that are not part of the management team of the company or its members. This means that they operate independently of the daily management activities of the company and offer a fresh this post perspective on the strategic issues that may arise.
The main function of corporate boards is to set the vision, mission and goals of the organization. This is usually done in collaboration with the CEO or general manager of the company. The board may also assist the company achieve its goals through the development of strategies and a risk management program. In addition, the board will give the company important network and business contacts.
A board’s other essential responsibility is to ensure that the company operates legally and in accordance with its declared mission and objectives. This includes ensuring that the board has a strong understanding of the company’s legal documents that govern the organization, such as articles of incorporation, bylaws, and applications for tax-exempt status. The board also ensures the company complies with its legal reporting requirements.
In addition, the board is responsible for hiring and setting the compensation for the CEO as well as supervising the management of the business. The board is also responsible for ensuring the financial statements of the company as well as 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 as well as providing the necessary leadership training to all members.