A board of directors monitors and advises an organization, operates independent from company management, and makes decisions to aid the company’s growth. It ensures that the business is legal and in the interests of investors, employees and other stakeholders. The Board members must have many different expertise and skills and should strive to establish a culture that is transparent and trusting.
The size, composition, and structure of a board will vary according to the kind of company. This includes whether it is publicly traded (as an open company), privately held (private or limited), or owned by employees or family members (family-owned). The rules governing each board’s governance are set out in the articles of incorporation or other bylaws.
The board’s primary responsibility is to fulfill three core obligations:
A well-rounded board is comprised of people with https://boardroomnyc.com/10-facts-you-should-know-about-board-meetings a variety of backgrounds and experiences. They are generalists who can have a helicopter view, and yet are experts in their specific areas of expertise. They are willing to pose tough questions and challenge management’s ideas. The best boards promote diversity and promote communication, collaboration and trust.