The board of directors plays an important role in governance and management of a business. It is made up of people with a variety of expertise and experience who are not affiliated with the management team or the company’s team. They are not a part of the management and daily operations of the company and are able to provide a fresh perspective on any strategic issues that could arise.
The primary role of a corporate board is to define the company’s vision, mission, and goals. This is usually done by the CEO or general manager of the business. The board will also help the business to reach its goals through the development of a strategic plan and plan for managing risks. The board also provides valuable contacts and networks for the company.
The board’s second responsibility is to ensure that the organization is operating legally and in line with the stated mission and goals. This involves ensuring that the board is equipped with an in-depth knowledge of the company’s documents that govern the organization, such as articles of incorporation, bylaws and applications for tax-exempt status. The board ensures that the company is in compliance with its legal reporting requirements.
Additionally, the board is responsible for hiring and setting the compensation of the CEO and supervising the management of the business. The board is also accountable for overseeing the financial statements of the company as well as helping the chief financial officer create long-term and short-term company strategies based on SWOT analysis. In addition the board is responsible for assessing and evaluating its own performance and providing the necessary leadership training to all members.
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