What Is a Board of Directors?

If you ask a group of people what a chair is, the most simple answer will be “Something that you sit on.” However this doesn’t reflect the essence of the chair as an inanimate object created for humans to sit on. Chairs belong to an entire set of objects known as “furniture” that includes other items with similar shape, function, or form. Chairs are available in different shapes, sizes and shapes to meet the requirements of individuals of all kinds.

Board of directors are a governing body elected by company shareholders to establish the company’s management and oversight policies. The structure of a board may differ, and the company’s bylaws can determine the number of members who are on the board, how often they meet, and also the election procedures. A board is typically comprised by employees of the company who are aware of the internal workings of an organization and experts from outside who are knowledgeable in a similar area.

The board is a strategic institution that supervises the CEO’s pursuit of goals in accordance with the overall vision of the company. The board can act as an effective shield for the business in times of crisis, when the CEO isn’t able to be everywhere. It takes an eye for spotting those with the right background and experience who are invested into the organization’s goals. A database of prospective candidates can be a fantastic method to find the right person for the job.

board of directors