The management board has many duties, including establishing strategy, managing finances developing relationships with the community and setting ethical standards. Boards elect a CEO, and monitor their progress. they set the direction of an organization by formulating an overall vision, mission and strategic thrusts, as well as goals; build community relations and establish management practices to ensure quality, governance and compliance; and deal with organizational changes that are triggered from changing circumstances or regulatory pressures.
Boards are legally accountable as fiduciaries to protect shareholders and investors. They establish policies for dividends and payouts, as well as hire/fire and compensate http://www.herbboardroom.com/responsibilities-of-board-of-management management as well as set corporate rules. They also maintain a strong relationship with and represent management to the organization. The chair of the board, typically chosen from the board members is a leader of the entire board. They are usually non-executive directors (NEDs) who serve as the liaison between the chief executive officer and the board.
The primary role of the board is to function as a steward of the organization. However some boards are prone to becoming management, trying to do things on their own rather than ensuring that their activities are in accordance with the company’s adherence to its mission. Boards should concentrate on balancing their oversight role in conjunction with their responsibility to ensure the success of the organization. The most efficient method to accomplish this is through the use of committees. For example, audit, compensation, and nominations committees have become popular ways of examining complicated issues. These committees provide the full board on their findings.