Essential Responsibilities of Boards of Directors
pA board of directors plays an essential role in the management and governance of a company. The board is comprised of people with a variety of backgrounds and skills who are not associated with the management team or company. They are not a part of the daily management activities of the business and can provide a fresh perspective on any strategic issues that might arise.
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pThe primary job of a corporate board is to set the organizations vision as well as its mission and goals. This is usually done by the CEO or general manager of the business. The board can also assist the company reach its goals through the development of strategies and a risk management plan. Moreover, the board can help the company by providing invaluable networking and business contacts.
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pAnother essential duty of a board is to ensure the company operates legally and in accordance with its stated mission and goals. This is done by making sure that the board has a strong knowledge of the companys legal documents for organizing, such as the articles of incorporation, bylaws and applications for tax-exempt status. The board ensures that the company complies with its legal reporting requirements.
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pThe board is also responsible for the hiring of the CEO, determining the compensation of the CEO and overseeing his the management. The board is also responsible for overseeing the financial statements of the company as well as helping the chief financial officer create short-term and long-term business strategies based on SWOT analysis. The board is also accountable for evaluating its own performance and delivering leadership training to all members.
/p a href=https://boardroomnow.info/ wikipedia reference/a