Overview of the Board of Directors - Explained
Duties of the Board
Written by Jason Gordon
Updated at September 25th, 2021
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Table of Contents
Overview of the Board of DirectorsWhat are the Primary Duties of the Board of Directors?Academic ResearchOverview of the Board of Directors
The directors of the corporation are elected by the shareholders. The board of directors represents the interests of the shareholders within the corporation. The role of the board of directors is to make high-level operational, strategic, and governance decisions for the corporation. The bylaws set procedures and control or limit the authority of the board. For example, the bylaws outline the procedure for electing the board.
Back To: BUSINESS ENTITIES, CORPORATE GOVERNANCE, & OWNERSHIP
What are the Primary Duties of the Board of Directors?
The primary duties of the board are as follows:
- Appoint, supervise, and decide on the compensation of officers;
- Make major decisions affecting the corporation (outside of the ordinary course of operations);
- Establish the company's strategic mission;
- Establish the company-wide policies;
- Make corporate financing decisions (particularly the issuance of equity);
- Approving the company budget;
- Ensuring compliance with federal, state, and local laws.
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Overview of Board of Directors
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- Codetermination (Foreign)
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- Advisory Board (Observer Directors)