What is the role of board of directors?
The board of directors is a group of individuals elected by the shareholders of a public corporation to oversee management and their actions. The board has two main responsibilities: an oversight role of managerial actions and an advisory role for corporate strategic planning.Oversight RoleThe fiduciary duty of the board of directors is to protect the interest of the shareholders. As a result, one of its top priorities is to oversee the actions of management, and to ensure that the interest of management is aligned with the interest of the shareholders.Advisory RoleThe board of directors has an advisory role for strategic planning. It reviews the firm’s investment policies and makes recommendations about raising capital, long-term investment projects and future dividend policies.Oversight CommitteesA board of directors consists of several oversight committees. Although not every board has the same committees, the most common and talked-about committees include the compensation committe
