The board of directors plays an important role in the management of a company. The board is comprised of individuals with diverse backgrounds and talents who are not associated with the management team or the company. They are not a part of the management and daily operations of the company and are able to offer a fresh view of any strategic challenges that may arise.
The main function of corporate boards is to define the vision, mission and goals of the company. This is often determined in conjunction with the general manager or CEO of the business. The board will also help the company achieve its goals through the development of a strategic plan and strategy for managing risks. Moreover, the board can help the company by providing invaluable business contacts and networks.
Another important duty of the board is to ensure that the company is operating in compliance with the stated mission and objectives. This involves ensuring that the board is equipped with a strong knowledge of the company’s organizing documents, including articles of incorporation, bylaws and applications for tax-exempt status. The board ensures that the company adheres to its legal reporting requirements.
The board is also accountable for the selection of the CEO, setting his compensation and overseeing the management. The board also oversees the company’s financial statements and assists the chief financial officer develop short and long-term strategies for the company using a SWOT analysis. Additionally the board is responsible for evaluating and assessing its own performance as http://www.boardroomnow.info/govenda-boardbookit-functions-and-pricing/ well as providing an education in leadership to all members.