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A board of directors is an essential role in the administration and governance of a business. The board is composed of individuals with diverse backgrounds and expertise who are not associated with the company or management team. They are completely independent of the day-to-day management activities of the business and can offer a fresh perspective to any strategic issues that may arise.

The main function of a corporate board is to set the goals, vision, and mission of the company. This is usually done in collaboration with the CEO or general manager of the company. The board can also assist the company in achieving its goals through the development of strategic policies and a strategy for managing risks. The board also provides invaluable contacts and networks to the company.

Another essential duty of a board is to ensure that the company operates legally and in accordance with its stated mission and goals. This includes ensuring that the board is aware of the legal documents of the company, like articles of incorporation and bylaws as well as applications for tax exemption status. The board makes sure that the business adheres to its legal reporting requirements.

The board is also responsible for the hiring of the CEO, setting his compensation and overseeing the management. The board is also responsible for ensuring the financial statements of the company and helping the chief financial officer develop short- and long-term company strategies that are based on SWOT analysis. In addition the board is accountable for assessing and evaluating its own performance as well as providing an education in leadership to all members.