A board of directors is a body of elected or appointed members who jointly oversee the activities of an organization. Other names include. It is often simply referred to as “the board”.A board’s activities are determined by the powers, duties, and responsibilities delegated to it or conferred on it by an authority outside itself. These matters are typically detailed in the organization’s bylaws. The bylaws commonly also specify the number of members of the board, how they are to be chosen, and when they are to meet. However, these bylaws rarely address a board’s powers when faced with a corporate turnaround or restructuring, where board members need to act as agents of change in addition to their traditional fiduciary responsibilities. In an organization with voting members, the board acts on behalf of, and is subordinate to, the organization’s full group, which usually chooses the members of the board.Typical duties of boards of directors include:
- Governing the organization by establishing broad policies and objectives;
- Selecting, appointing, supporting and reviewing the performance of the general manager or chief executive;
- Ensuring the availability of adequate financial resources;
- Approving annual budgets;
- Accounting to the stakeholders for the organization’s performance;
- Setting the salaries and compensation of organization management.