A board of directors has an important part in the management of a business. It is made up of people with a variety of experience and expertise who aren’t associated with the company or its management team. This means that they function independently of the daily management of the company and offer a fresh perspective on strategic issues that may arise.

The primary role of a corporate board is to set the organization’s vision objectives, mission, and values. This is often determined in conjunction with the CEO or general manager of the business. The board may also assist the business reach its goals by establishing strategies and a risk management program. Additionally, the board can provide the company with invaluable networking and business contacts.

Another major responsibility of the board is to ensure that the company is operating legally and in line with its stated mission and goal. This includes ensuring the board understands the legal documents of the company, such as articles of incorporation and bylaws, and 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, determining his compensation and overseeing management. The board also oversees the company’s financial statements and assists the chief financial officer to come up with short- and long-term strategies for the company with a SWOT analysis. Additionally the board is accountable for assessing and evaluating its own performance as well as providing the necessary leadership training to all members.

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