A board boardroomnyc.com/role-of-the-board-in-strategic-planning/ of directors is independent from the management of the company. It supervises and gives advice to a business. They also make decisions to help it flourish. It ensures that the company operates in accordance with the law and is in the best interests of the employees, investors and other stakeholders. Board members should possess a broad range of capabilities and experience, as well as develop an environment of trust and transparency.
The size, composition, and structure of a board will vary depending on the nature of the entity. This includes whether it is publicly traded (as a public company), privately held (private or limited), or owned by family members or employees (family-owned). The governance of every board is determined by its own set of rules, which can be framed in its articles of incorporation or other bylaws.
The primary responsibility of the board is three fundamental obligations.
A well-rounded board has members with a range of experiences and backgrounds. They are generalists that can keep a broader perspective, and yet experts in their areas of focus. They are prepared to ask hard questions and challenge the management’s assumptions. The best boards also promote diversity, and promote collaboration, communication, and trust.