A board of directors has an important part in the management of a company. It is comprised of individuals with a range of experiences and skillsets who are not affiliated with the management team or the company’s team. They are completely independent of the day-today management functions of the company and are able to provide a fresh perspective on any strategic index issues that might arise.

The primary role of corporate boards is to establish the vision, mission and goals of the organization. This is usually done in conjunction with the CEO or general manager of the company. The board will also aid the company achieve its goals by assisting in the formulation of a strategic plan and strategy for managing risks. The board can also provide valuable contacts and networks for the company.

Another crucial obligation of the board is to ensure that the company operates in a legal manner and in accordance with its stated mission and goal. This includes ensuring the board is aware of the legal documents of the company, including articles of incorporation and bylaws and applications for tax exemption status. The board also ensures that the company is in compliance with its legal reporting requirements.

Lastly, the board is responsible for hiring and setting compensation for the CEO and supervising the management of the business. The board is also accountable for overseeing the financial statements of the company and helping the chief financial officer develop short- and long-term company strategies based on SWOT analysis. The board is also accountable for assessing its own performance and providing leadership training to the members of the board.