Essential Responsibilities of Boards of Directors

The board of directors plays an important role to play in the management of a corporation. The board is comprised of people with different backgrounds and abilities that are not a part of the company or management team. This means that they operate independently of the daily management tasks of the business and offer a fresh perspective on the strategic issues that may arise.

The primary role of the corporate board is to define the vision, mission and objectives of the company. The majority of the time, this is done in conjunction with the CEO or general manager of the company. The board also assists the company to achieve its goals by assisting in the formulation of a strategic plan and strategy for managing risks. The board also provides valuable contacts and networks to the company.

Another important obligation of the board is to ensure that the business is operating legally and in line with its stated mission and purpose. This involves ensuring that the board is equipped with an understanding of the company’s legal organizing documents, including articles of incorporation, bylaws and applications for tax-exempt status. The board ensures index that the company complies with its legal reporting requirements.

The board is also accountable for the selection of the CEO, determining his compensation and overseeing management. The board is also responsible 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. In addition, the board is responsible for assessing and evaluating its own performance, and also provides the necessary leadership training to all members.