Essential Responsibilities of Boards of Directors

http://www.boardroomnow.info/what-is-the-difference-between-oversight-and-management/

A board of directors is an important role in administration and governance of a business. It is made up of individuals with a range of skills and experiences who aren’t associated with the company or its management team. They are completely independent of the daily management activities of the business and can offer a fresh perspective to any strategic challenges that may arise.

The primary purpose of the corporate board is to set the vision, mission and goals of the organization. The majority of the time, this is done in collaboration with the CEO or general manager of the company. The board can also help the company achieve its goals by developing strategic policies and a risk management plan. In addition, the board will provide the company with valuable connections and business contacts.

Another major responsibility of the board is to ensure that the business is operating in compliance with the stated mission and objectives. This includes making sure that the board has an in-depth knowledge of the company’s legal documents that govern the organization, such as articles of incorporation, bylaws, and applications for tax-exempt status. The board also ensures that the company is in compliance with its legal reporting requirements.

The board is also responsible for the hiring of the CEO, setting his compensation and overseeing the management. The board also supervises the company’s financial statements and assists the chief financial officer develop short and long-term strategies for the company that are based on a SWOT study. In addition the board is accountable for evaluating and assessing its own performance, and also provides leadership training for all members.