A board of directors is independent from the management of a company and boardroomnyc.com/10-facts-you-should-know-about-board-meetings/ supervises and advises a company. They also make decisions to help it grow. The board ensures that the business operates in compliance with law and is in the best interests of the employees, investors and other stakeholders. Board members should have a wide range of capabilities and experience, and work to create a culture that is transparent and trusting.
The size, composition and structure of a board will vary according to the nature of the entity. This includes whether it is publicly traded (as an open company) and privately held (private or limited), or owned by family members or employees (family-owned). The rules governing each board’s governance are outlined in the articles of incorporation, or other bylaws.
The board’s primary obligation is to fulfill three key obligations:
A well-rounded board includes members with a range of experiences and backgrounds. They are generalists that can have a helicopter view, and yet experts in their specific areas of expertise. They are not afraid to ask difficult questions and challenge the assumptions of management. The best boards also promote diversity, and promote collaboration as well as communication and trust.
