What Is a Board of Directors?

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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 be different and the company’s bylaws can determine the number of members who are on the board, as well as how often they meet, and also the election procedures. A board is usually made of employees who are familiar with the inner operations of the organization, as well as experienced individuals from outside with expertise in a similar field.

The board is a strategic institution which oversees the CEO’s actions in pursuing goals that are in line with the company’s overall vision. When the CEO cannot be everywhere the board acts as a shield and guide the company through unfamiliar waters. Building the ideal board requires an attentive eye to effective board of directors identify those with the right abilities and experience, as well as committed to the company’s mission. A database of potential candidates is a good method to identify the ideal candidate for the job.

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