What Is a Board of Directors?

If you ask the group of people what a chair is the most obvious answer will be “Something that you sit on.” However this doesn’t really give the full meaning of the chair as an inanimate object made for humans to sit on. Chairs belong to the category of “furniture” that includes this article about what does due diligence check involve and where you can conduct it other objects that have the same shape, function or design. Chairs are available in different shapes, sizes and designs to meet the needs of people of all ages.

The board of directors is an governing body chosen by shareholders to set corporate policies and oversee the business. The structure of a Board can vary, and the bylaws of the company can affect the number of members and the frequency at which they meet and the manner in which the election procedure is carried out. A board is typically comprised by employees of the company who are aware of the internal workings of an organization and qualified individuals from outside who have expertise in a related field.

The board is a strategic body that oversees the CEO in the pursuit of goals that align with the company’s overall vision. In critical times, when the CEO cannot be everywhere the board could act as an extra layer of protection and help guide the company through uncertain waters. The ideal board requires an eye for those with the right abilities and backgrounds who are invested in the organization’s mission. Keeping a database of potential candidates is a great method of identifying the ideal fit for a vacancy.