21 Jul Essential Responsibilities of Boards of Directors
The board of directors play an important part in the management of a company. The board is comprised of individuals with diverse backgrounds and expertise that are not a part of the management team or company. They are independent of the day-to-day management activities of the business and can provide a fresh perspective to any strategic issues that might arise.
The primary role of a corporate board is to set the organization’s vision and mission as well as the goals. This is usually done in combination with the general manager or the CEO of the business. The board may also assist the business achieve its goals by developing strategic policies and a risk management strategy. The board also provides valuable contacts and networks for the company.
Another essential duty of a board is to ensure that the business is legally governed and operates in accordance with its declared mission and objectives. This is done by 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 makes sure that the company is in compliance with its legal reporting requirements.
The board is also accountable for the selection of the CEO, determining the compensation of the CEO and overseeing his management. The board is also responsible for ensuring the financial statements of the company as well as aiding the chief financial officer to develop short- and long-term company strategies based on SWOT analysis. Additionally the board is responsible for assessing and evaluating its own performance and provides leadership training for all members.
No Comments