What Is a Board of Directors?

If you ask some people in a group what a chair is the most obvious answer will be “Something that you sit on.” However it doesn’t give the full meaning of the chair as an inanimate object made for humans to sit on. Chairs are a member of a set or category called “furniture” which also includes other objects that have the same shape, purpose or form. Chairs are also available in a variety of forms, shapes and sizes to meet the needs of human beings of all types.

The board of directors is an governing body elected by shareholders to establish corporate policies and supervise the company. The structure of a board can differ, and bylaws of a company can affect the number of members and how often they meet and how the voting procedure is conducted. A board is typically comprised of insiders from the company who are familiar with the organization’s internal operations and qualified people outside the company who carry expertise in the field.

The board is a strategic body which oversees the CEO’s board of directors actions in pursuing goals that are in line with the company’s vision. The board is an advocate for the company in times of crisis, when the CEO is unable to be everywhere. The ideal board requires a keen eye to find people with the right skills and experience who are committed to the company’s mission. A database of candidates can be a fantastic method to find the right candidate for a job.