This post is based on a Quora question that I answered: Q. What is the board of directors? What are the functions of the board of directors? What is the function of each member of the board?
A. The board of directors, which is subject to shareholder election and removal, generally is responsible for managing the corporation’s business and affairs.
Specific responsibilities typically undertaken by a board (particularly in a mature company) include, but are not necessarily limited to, the following:
- Developing a strategic planning process
- Selecting and directing management
- Protecting shareholder rights
- Ensuring legal compliance
Directors must accomplish the foregoing by exercising sound business judgment and by acting with honesty and loyalty.
Each member shares in the responsibilities, though some responsibilities may be delegated to committees consisting of subsets of board members.
Check out all posts about boards of directors.
Dana H. Shultz, Attorney at LawÂ +1 510 547-0545Â dana [at] danashultz [dot] com
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