http://www.boardroomnow.info/govenda-boardbookit-functions-and-pricing/
A board of directors plays an important role to play in the management of a business. It is comprised of people with a variety of experience and expertise that are not associated with the company or its management team. This means that they function independently of the day-to-day management tasks of the business, providing a fresh perspective on any strategic issues that might arise.
The primary role of a corporate board is to establish the organization’s vision as well as its mission and goals. This is usually done in conjunction with the general manager or CEO of the business. The board will also help the company to achieve its goals by assisting in the formulation of a strategic plan and strategy for managing risks. Moreover, the board can give the company useful network and business contacts.
Another major role of the board is to ensure that the business operates in a legal manner and in accordance with its stated mission and purpose. This involves ensuring that the board is equipped with a strong understanding of the legal documents for organization, such as articles of incorporation, bylaws and applications for tax-exempt status. The board ensures that the company adheres to its legal reporting requirements.
In addition, the board is responsible for hiring and determining the compensation for the CEO as well as managing the company’s management. The board is also responsible for ensuring the financial statements of the company as well as aiding the chief financial officer develop short- and long-term company strategies based on SWOT analysis. Additionally the board is accountable for assessing and evaluating its own performance as well as providing an education in leadership to all members.