Whether it's setting strategies, overseeing management and finances, fostering relationships with communities or establishing ethical standards and values, the functions of the management board are numerous and diverse. Boards select and oversee the CEO; they establish vision, mission, and strategic goals; they establish relationships with the community; they establish management practices for governance, quality, and compliance; and finally, they tackle the need for organizational change due to changes in circumstances and regulatory pressures.

As fiduciaries boards are legally accountable for representing shareholders and owners as well as investors. They set the corporate rules, set guidelines for dividend payouts and compensation, and appoint and dismiss upper management. They also maintain a clear communication with management and are the representative of the company. The chair of the Board, which is typically elected by the board members and is the head of the entire board. They are typically non-executive directors (NEDs) who act as the intermediary between the chief executive officer and the board.

The board's main function is to serve as an overseer of the company. Some boards, however, cross the line and try to manage the organization themselves, rather than ensuring that the activities are in line with the mission of the organization. Boards must keep in mind their oversight role and their responsibility to ensure organizational success. This can be achieved most efficiently through committees. Audit or compensation and nominating committees, for instance are now popular methods of looking at complex issues. These committees provide the full board on their findings.

http://www.herbboardroom.com/responsibilities-of-board-of-management