The major duties of a board of directors are typically to appoint a chief executive, govern the organization by establishing objectives and policies, account to the stakeholders and ensure availability of adequate resources. A board of directors is a group of appointed persons who jointly administer the activities of an organization.
A board of directors is charged with the role of selecting, appointing and supporting the general manager or the chief executive. The chief executive officer is responsible for the overall management of an organization. A board of governors evaluates his performance regularly on the basis of a specific job description. Depending on the performance of the chief executive, the board members can either retain or dismiss him.
The board has a strategic function of setting the mission, vision, goals and objectives of an organization. These are often determined in combination with the chief executive and employees. Board members can also change the mission or vision, but only after careful deliberations.
A board of directors has a fiduciary duty to represent and protect investor’s interest in the organization.They ensure that all the company assets are kept in good order. Additionally, they provide sufficient resources to ensure all the organization’s operations are carried out efficiently.