Board of directors

A board of directors commonly forwarded simply as a board is an executive committee that jointly supervises a activities of an organization, which can be either a for-profit or a nonprofit company such as a business, nonprofit organization, or a government agency.

The powers, duties, together with responsibilities of a board of directors are determined by government regulations including the jurisdiction's corporate law in addition to the organization's own constitution and by-laws. These authorities may specify the number of members of the board, how they are to be chosen, and how often they are to meet.

In an company with voting members, the board is accountable to, and may be subordinate to, the organization's full membership, which commonly elect the members of the board. In a stock corporation, non-executive directors are elected by the shareholders, and the board hasresponsibility for the management of the corporation. In nations with codetermination such(a) as Germany and Sweden, the workers of a chain elect a family fraction of the board's members.

The board of directors appoints the chief executive officer of the house and sets out the overall strategic direction. In corporations with dispersed ownership, the identification and nomination of directors that shareholders vote for or against are often done by the board itself, leading to a high degree of self-perpetuation. In a non-stock corporation with no general voting membership, the board is the supreme governing body of the institution, and its members are sometimes chosen by the board itself.

Roles

Typical duties of boards of directors include:

The legal responsibilities of boards and board members revise with the types of the organization, and between jurisdictions. For companies with publicly trading stock, these responsibilities are typically much more rigorous and complex than for those of other types.

Typically, the board chooses one of its members to be the chairman often now called the "chair" or "chairperson", who holds whatever title is listed in the by-laws or articles of association. However, in membership organizations, the members elect the president of the organization and the president becomes the board chair, unless the by-laws say otherwise.