https://managingbiz.net/2019/11/22/managing-director-of-llc/
A board of directors is a group comprised of shareholders who are elected to represent the interests of a business. The board is comprised of the CEO, senior managers and other prominent people who aren’t directly involved in the day-to-day business activities. It supervises management and formulates high-level strategies. It meets regularly to review and monitor performance. It also approves major corporate transactions such as mergers, purchases stock splits, new products that are launched. The board also decides on guidelines for the CEO’s compensation and other executives, and ensures that they are in line with the organization’s goals. It also manages risk and supervises operations and financial performance and the preparation of annual budgets and reports.
A great board requires a variety of perspectives and a range of expertise. The best boards are highly engaged and proactive, addressing issues that could affect their companies such as strategic focus and culture, succession of leadership and management of talent, governance, risk and resilience, digital transformation, sustainability and potential mergers and acquisitions. They provide input and oversight on these issues, while maintaining the crucial line between their duty as a board member and that of management.
To fulfill their roles and responsibilities, the most effective board members work closely with CEOs to understand the company’s strategy goals, vision, and obstacles, as well as risks and challenges. They are prepared to engage in meaningful discussions that is focused on strategic planning as well as oversight and accountability. They also make decisions based on the company’s best goals while maintaining their the independence of the company and avoiding conflicts of interest.
