A board of directors is a group which supervises the activities of a corporation, a non-profit organisation, or a government agency. It is responsible for establishing the governance, management and policies. It could be made up of both insiders who understand the inner workings of the company and outsiders who have expertise in certain areas. It also selects officers, such as presidents, and others with titles such as vice-president, vice chair, or a combined secretary/treasurer. A board can have strict rules governing director behavior and may also enforce fitness to serve requirements. Directors can also be dismissed and could have disciplinary procedures in place for instances of fiduciary duties violations or other misconduct.
In many ways the board of directors can be described as the rudimentary section of a business. It provides guidance and supervision while the executive team and the CEO deal with the day-today problems and execute the strategy. In ideal circumstances the board will work with the CEO to grow the company’s goals while asking difficult questions that probe into the operations’ details.
Ideal board members will have an array of abilities and a passion for the growth of the organization. They should be able to learn quickly and think quickly on the spot. They should have a high level of emotional intelligence which allows them to react to emotional and physical situations in a way that benefits the company. They should also be able work well with others.
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