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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 Research

Overview 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.


Related Topics

  • Overview of Board of Directors
  • What is the role of the Board of Directors?
  • What is the composition of the board of directors?
  • What standards govern the actions of the board of directors?
  • What is the Business Judgment Rule?
  • What is D&O insurance?
  • Codetermination (Foreign)
  • Board Decision Making
  • Advisory Board (Observer Directors)

Academic Research


overview of the board of directors board of directors

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