Hi Janny, I don’t think companies necessarily need board of directors but its always better to have them even if its not necessary. Many companies do not have board of directors at an early stage, like the initial stage of a startup but its never too early to have board of directors. These directors do play a crucial role in the company. The board can be a group of founders, a formal board with a non-executive chairman or a husband and wife team meeting monthly. Companies need to do the appointment of them by the voting of shareholders. These meetings are held to assess the risk, develop a budget and long term strategies.
Not just this but they also play a key role in the appointment of a CEO and they can also fire him if needed. Hence they do a big role to play in a company.