A board of directors has an important role in the management of a corporation. It is made up of people with a variety of experiences and skillsets who are not affiliated with the company or its management team. This means that they function independently of the day-today management tasks of the business and offer a fresh perspective on any strategic issues that might arise.

The primary role of the corporate board is to set the vision, mission and objectives of the organization. This is usually done in collaboration with the CEO or the general manager of the company. The board may also assist the company reach its goals through the development of strategic policies and a risk management strategy. The board can www.boardroomnow.info/govenda-boardbookit-functions-and-pricing also provide valuable contacts and networks to the company.

The board’s second responsibility is to ensure that the company is operating legally and in line 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 as well as applications for tax exemption status. The board makes sure that the business adheres to its legal reporting requirements.

The board is also responsible for the hiring of the CEO, setting his compensation and directing the management. The board also supervises the company’s financial statements and assists the chief financial officer to create long- and short-term strategies for the company using a SWOT analysis. The board is also accountable for evaluating its own performance, and providing leadership training to the members of the board.