The board of directors plays a vital role in the administration and governance of a company. It is made up of individuals with a range of expertise and experience who are not affiliated with the management team or the company’s team. They are independent of the daily management activities of the business and can provide a fresh perspective to any strategic issues that may arise.

The main function of a corporate board is to set the goals, mission, and vision of the company. This is usually done in conjunction with the general manager or CEO of the business. The board will also help the company achieve its goals by assisting in the formulation of a strategic plan and strategy for managing risks. The board can also provide important contacts and networks to the company.

The board’s second responsibility is to ensure the company operates legally and in accordance with the stated mission and goal. This includes ensuring that the board has a strong understanding of the legal documents for organization, such as articles of incorporation, bylaws and applications for tax-exempt status. The board also ensures that the business adheres to its legal reporting requirements.

The board is also responsible for the hiring of the CEO, setting the compensation of the CEO and overseeing his the management. The board also monitors the company’s financial statements and helps the chief financial officer to create long- and short-term strategies for the company with a SWOT analysis. Additionally the board is accountable for assessing this post and evaluating its own performance, and also provides an education in leadership to all members.