Overview of Board of Directors

Cite this article as:"Overview of Board of Directors," in The Business Professor, updated October 17, 2014, last accessed October 22, 2020, https://thebusinessprofessor.com/lesson/overview-board-directors/.
Video Thumbnail

Duties of Board of Directors

http://youtu.be/jSAgc3RD8_k Back To: BUSINESS ENTITIES, CORPORATE GOVERNANCE, & OWNERSHIP 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 t

Cite this article as:"Overview of Board of Directors," in The Business Professor, updated October 17, 2014, last accessed October 22, 2020, https://thebusinessprofessor.com/lesson/overview-board-directors/.

Back To: BUSINESS ENTITIES, CORPORATE GOVERNANCE, & OWNERSHIP

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. 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.

Was this article helpful?