The board of directors acts as a link between shareholders and top management.
- A board of directors is a group of individuals chosen to represent shareholders, and this board is ultimately in charge of managing the business. Installing a board of directors is a legal requirement for any publicly traded corporation. Even though it is not required by law, nonprofit organizations and many private businesses frequently have a board of directors.
- The board is tasked with managing the firm or organization, setting management rules, safeguarding the interests of shareholders, and making critical decisions. As a fiduciary for shareholders, the board of directors serves.
- In addition, the board is responsible for recruiting and dismissing chief executive officers (CEOs), establishing dividend and stock option policies, and making sure the business has the resources it needs to operate effectively.
Thus this is the meaning of board of directors.
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