What Role Does the Board of Directors Play in Corporate Governance?
The Board of Directors plays a pivotal role in corporate governance by:
1. Setting Strategic Direction: Defining the company’s vision, mission, and long-term goals. 2. Oversight: Monitoring management performance and ensuring the company adheres to legal and ethical standards. 3. Risk Management: Identifying potential risks and developing strategies to mitigate them. 4. Financial Oversight: Approving budgets, financial statements, and ensuring proper financial controls are in place. 5. Succession Planning: Ensuring there is a plan for leadership continuity and development.