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The Board of Directors and the Board of Management
A board of directors is a body that www.boardroomtoday.net/election-process-for-nonprofit-board-members/ governs an entity, whether the company is publicly traded (public company) privately owned, privately owned or only open to family members (family company), or tax-exempt (a non-profit corporation). The authority, responsibilities, and duties of the board are heavily governed by the regulations of the government and the constitution and by-laws of the organisation.
Most presidents and external directors believe that the role of a board is advisory, not making decisions. Management manages the business and the board provides advice and direction to management. Directors who are outsiders are hired because of their expertise in certain areas of business, and also to offer a view of the larger picture that management might not have. Many smart presidents take advantage of the sources of advice represented on their boards — inside and outside the formal meetings — and are careful to select directors based on their desirable capabilities or areas of specialization.
A classic function of a board is to question management, especially when there are major problems with the business or the economy. My research revealed that, even although many presidents claim to encourage directors to ask thoughtful questions, they don’t allow questions to be asked during regular board meetings. This is especially true when they feel they are being attacked by subordinates that attend the meeting.
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