What Is a Board of Directors?

If you ask some people in a group what a chair is the most common answer is “Something that you sit on.” However it doesn’t do justice to the essence of the chair as an inanimate object that has been designed to be used by humans to sit on. Chairs belong to an entire set of objects known as “furniture” that includes other items with the same shape, function or design. Chairs also come in a variety dimensions, shapes, and sizes to meet the requirements of people of all kinds.

The board of directors is a governing body that is elected by shareholders to set corporate policies and supervise the business. The structure of a board can differ, and the company’s bylaws can determine the number of members who are on the board, how often they meet, and also the election procedures. A board typically is made consisting of insiders from the company who are knowledgeable about the inner workings of the company and experienced individuals from outside with expertise in a similar area.

The board is a strategic entity which oversees the CEO’s goals in alignment with the overall vision of the company. In critical times, when the CEO isn’t everywhere, the board can serve as an ointment and help guide the company through uncertain waters. To create the perfect board, it requires a keen eye to locate people with the right skills and backgrounds who are invested in the Board Report organization’s mission. Maintaining a database of possible candidates is a great way to find the perfect person for the job.