Frequently asked questions about any given company's board of directors are how can one serve on the board of directors and what are the duties and responsibilities of the board. Composed of elected or appointed members, a board of directors provides fiduciary oversight to a company's activities.
Company bylaws typically define the number of board members, who can become a member of the board and their level of qualifications. In publicly traded companies, shareholders typically nominate candidates to join the board, and the board may choose new members on the basis of their expertise to enhance the board's composition.
With members of the board working as a group, the board of directors sets broad policies and objectives for the company, determines management compensation, approves yearly budgets, explains company performance to shareholders and evaluates the CEO's performance.