The management board performs a variety of functions, including setting strategy, managing finances developing relationships with the community and setting ethical standards. Boards select and oversee the CEO; they establish check my source the vision, mission, and strategic goals; they establish connections with the community; they develop the management procedures for quality, governance and compliance; and lastly, they deal with the need for organizational change due to changes in circumstances and regulatory pressures.
As fiduciaries, boards are legally responsible for representing owners/shareholders as well as investors. They decide on policies for dividends and payouts. They also hire/fire and reward management. They also make corporate rules. They also maintain a high level of communication with management and represent them to the organization. The Chair of the Board, who is usually elected by the board members is the leader of the whole board. Most of the time, they are a non-executive director (NED) and serve as the liaison with the chief executive officer.
The main role of the board is to be an overseer of the company. However some boards are prone to becoming management, and attempt to handle things on their own instead of ensuring that their activities are in accordance with the company’s adherence to its mission. Boards should concentrate on balancing their oversight responsibilities and their responsibility for ensuring the overall success of the organization. The most efficient way to achieve this is through the use of committees. Audit or compensation and nominating committees, for instance, have become popular methods to look at complicated issues. These committees report to the board in general on their findings.