A board of directors has an important role to play in the management of a corporation. It is comprised of individuals with a wide range of experiences and skillsets who aren’t associated with the management team or the company’s team. They are completely independent of the daily management activities of the business and can provide a fresh perspective on any www.boardroomnow.info/working-board-vs-governance-board strategic issues that might arise.

The primary purpose of a corporate board is to set the organization’s vision objectives, mission, and values. This is usually decided by the general manager or the CEO of the business. The board will also help the company achieve its goals through the development of a strategic plan and plan for managing risks. The board can also provide important contacts and networks to the company.

The board’s second responsibility is to ensure that the organization is operating legally and in line with the stated mission and purpose. This includes ensuring the board is aware of the legal documents of the company, like articles of incorporation and bylaws, and applications for tax exemption status. The board ensures that the company is in compliance with its legal reporting requirements.

The board is also 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 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 assessing and evaluating its own performance, and also provides an education in leadership to all members.