A board of directors is a group of individuals elected by shareholders to oversee the activities and strategic direction of a company. It represents shareholder interests and ensures the company is managed responsibly.

Board responsibilities include hiring and evaluating the CEO, setting strategy, approving budgets, ensuring compliance, and protecting shareholder value. Boards often have committees for audit, compensation, and nominating. Good governance requires independence, diversity, and transparency.

Key points

• Elected by shareholders
• Oversees strategy and management
• Hires and evaluates the CEO
• Requires independence and transparency