A board of directors is an organization that is responsible for the oversight of a business or nonprofit organization. It is responsible for determining the company’s governance, management, and policies. It could be comprised of insiders who know the inner workings of the organization and external experts with expertise in certain areas. It also chooses its own officers, including a president and others who are titled vice-president or vice-chair, and a treasurer or combined secretary/treasurer. A board could have strict rules regarding director behavior, and may also impose fitness to serve requirements. Directors can also be dismissed, and may implement disciplinary measures for fiduciary duty violations or other infractions.
In many ways, a board of directors is the main artery of a company. It offers guidance and oversight while the CEO and executive team deal with the day-today challenges and implement strategies. In ideal circumstances, a board of directors will collaborate with the CEO in advancing the company’s goals while asking difficult questions that dig into the details of operations.
Ideally, a board should be comprised of people with various skills and a strong desire to see the organization succeed. They should be able to learn quickly and think on their feet. They should possess a high emotional intelligence and be able to react to emotions and situations in a way that benefits the team. Finally they should be able to perform well in a group.
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