It’s about setting strategies, overseeing management or finances, building community relationships, or establishing ethical standards and values, the responsibilities of the management board are numerous and diverse. Boards choose and supervise a CEO; they develop an overall vision, mission and strategic thrusts; they build connections with the community; they develop management practices in governance, quality and compliance lastly, they deal with organizational changes resulting from changing circumstances and regulatory pressures.
Boards are legally liable as fiduciaries, whose job is to represent shareholders and investors. They establish policies for dividends and payouts, hire/fire and reward management. They also create corporate rules. They also maintain strong communications with and represent management to the company. The Chair of the Board, usually elected by the board members and is the head of the entire board. They are usually non-executive directors (NED) and serve as the liaison with the chief executive officer.
The board’s main function is to act as an overseer of the company. Some boards however, stray from the line and try to run the company themselves instead of ensuring their actions are in line with the organization’s mission. Boards must keep in mind their oversight role and their responsibility to ensure organizational success. This her explanation can be accomplished effectively by using committees. For example, audit, compensation, and nominations committees have become well-known ways of examining complicated issues. These committees report their findings to the entire board.