A board of directors plays an important role to play in the management of a business. The board is comprised of people with different backgrounds and skills who are not connected to the management team or company. They are independent of the day-to-day management activities of the company and are able to offer a fresh view of any strategic issues that could arise.
A corporate board’s primary function is to define the company’s vision objectives, mission, and values. It usually works in conjunction with the CEO or general manager of the company. The board will also help the company in achieving its objectives through the creation of a strategic plan and plan to manage risks. Additionally, the board can help the company by providing valuable business contacts and networks.
Another important responsibility of a board is to ensure the company is legally governed and operates in accordance with its stated mission and purpose. This is done by ensuring that the board has an in-depth understanding of the legal documents for organization, such as articles of incorporation, bylaws, and applications for tax-exempt status. The board also ensures the company adheres to its legal reporting requirements.
The board is also accountable for the selection of the CEO, determining his compensation and overseeing the management. The board is also accountable for ensuring the financial statements of www.boardroomnow.info the company as well as helping the chief financial officers develop short- and long-term company strategies that are based on SWOT analysis. Additionally the board is accountable for evaluating and assessing its own performance as well as providing an education in leadership to all members.