What Is a Board of Directors?

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The board of directors is a governing body that is chosen by shareholders to set corporate policies and supervise the operations of the company. The structure of a board can vary and the company’s bylaws will determine the number of directors who are on the board, how often they effective board of directors meet, and the election procedures. A board is usually made consisting of insiders from the company who are well-versed in the inner workings of an organization and competent individuals from outside with expertise in a related field.

The board is a governing body that supervises the CEO in the pursuit of goals that are in line with the company’s overall vision. The board can be a shield for the company in times of crisis, when the CEO is not able to be everywhere. Building the ideal board requires an eye for individuals with the appropriate skills and background who are also committed to the mission of the organization. Maintaining a database of possible candidates is a smart method of identifying the best person for the job.

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