What Is The Role Of Board Of Directors?

What Is The Role Of Board Of Directors?

1 Answer

  1. The role of Board of Directors is significant and poignant for a company. The board determine the company’s vision and mission to guide and set the pace for its current operations and future development it also determine the values to be promoted throughout the company and review company goals and policies.
    The Directors review and evaluate present and future opportunities, threats and risks in the external environment and further determine strategic options, select those to be pursued, and decide the means to implement and support them.Their role is to create business strategies and ensure that the company’s organisational structure and capability are appropriate for implementing the chosen strategies.
    As they are on the top level of hierarchy, so they need to delegate authority to management, and monitor and evaluate the implementation of policies, strategies and business plans.They also need to determine monitoring criteria to be used by the board and ensure that internal controls are effective.
    They also need to understand and take into account the interests of shareholders and relevant stakeholders. While they should also monitor relations with shareholders and relevant stakeholders by the gathering and evaluation of appropriate information.

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