A board of directors is an organization which oversees a company or non-profit organization. It is responsible for determining the company’s governance, management, and policies. It is composed of insiders who are familiar with the workings of the business and externally qualified experts with knowledge of certain areas. The board also elects officers such as presidents, and others with titles like vice-president, vice chair or a combined secretary/treasurer. A board may have strict rules for director behavior and may also impose fitness to serve requirements. Directors can also be dismissed and could be able to enforce disciplinary measures in the event of fiduciary duty violations or other infractions.
In many ways the board of directors is the rhythm section of a business–it provides guidance and oversight while the executive team and the CEO deal with the day-today problems and execute the strategy. In ideal situations, a board will cooperate with the CEO to grow the company while asking tough questions that probe into the operations in detail.
A good board should be comprised of people with many skills and a strong desire to see the business succeed. They must be able to learn quickly and think quickly. They must be able to respond to emotions and situations in ways that are supportive of the group. And, finally, they should be able to work well in a group.