The board of directors play an important role to play in the governance of a corporation. The board is comprised of people with different backgrounds and abilities that are not part of the management team or the company. They are unaffected by the daily management activities of the business and can offer a fresh view of any strategic issues that could arise.
The primary role of corporate boards is to set the goals, vision, and mission of the organization. This is usually decided by a meeting with the general manager or the CEO of the business. The board can also assist the company to achieve its goals through the development of a strategic plan and plan to manage risks. In addition, the board will help the company by providing invaluable connections and business contacts.
Another important role of the board is to ensure that the business operates in a legal manner and in accordance with its stated mission and goal. This includes ensuring that the board understands the legal documents of the company, including bylaws and articles of incorporation and applications for tax exemption status. The board ensures that the company complies with its legal reporting requirements.
Additionally, the board this post is responsible for hiring and determining compensation for the CEO and overseeing the management of the company. The board is also responsible for overseeing the financial statements of the company and helping the chief financial officer develop short- and long-term company strategies that are based on SWOT analysis. In addition the board is accountable for evaluating and assessing its own performance and provides training in leadership for all its members.