A board of directors is independent from the management of the company. It supervises and gives advice to a business. They also make decisions to assist it to flourish. The board ensures that the organization operates lawfully and in the interests of investors, employees and other stakeholders. The board members should have an array of skills and experience and strive to create a culture which is open and trusting.

The structure, size and members depend on the type of business entity it is, whether it’s publicly traded (a public company) or boardroomnyc.com/role-of-the-board-in-strategic-planning/ not publicly traded (private or limited), owned by employees or family members (family or employee-owned), or tax-exempt (a nonprofit or charity). Each board’s governance is governed by its own set of rules that can be set out in its articles of incorporation or in other bylaws.

The primary responsibility of the board is three main obligations.

A well-rounded board consists of members with a variety of backgrounds and experiences. They are experts in their fields, but also generalists who are able to think from a helicopter’s point of view. They are willing to tackle tough questions and challenge management’s beliefs. The best boards promote diversity and promote communication, collaboration and trust.