what do you think A Board of Directors is a legal entity wi

what do you think ?

A Board of Directors is a legal entity with well-defined responsibilities and real authority. There are advantages of having a board of directors. Boards extend connections and give the company access to places and people they can’t reach. They can make the introductions needed to amplify business opportunities. Key managers are held accountable to deliver on their promises to the board. Everybody has to report to somebody, and the board helps reinforce accountability and urgency. A board propels company growth by lending credibility to customers, employees and other stakeholders. Boards can provide cover for difficult strategic decisions. CEOs or key managers can justify tough choices by saying “the board recommended”. There are disadvantages of having board of directors. If your company is small or growing very slowly you probably don’t need a Board of Advisors. You may be better off simply joining a peer networking group because it takes less work and it’s easier to get out of it if it just isn’t working. If you have a low tolerance for other people’s opinions or you are excessively paranoid about competitors. You should consider other alternatives.

Solution

Board of directors are necessary for any corporation whether the corporation is small or large one. The law necesitates the constitution of the board of directors. The board of directors overlook the affairs of the company and provide guidance and support to steer the corporation towards its goals and objectives. Choosing the right type of business form is most important for an entrepreneur as making changes midway can prove costly. If the business owner wishes to have greater autonomy, then they should choose sole proprietorship type of business form instead of corporation . If the entrepreneur elects to form a corporation, then they will be held accountable for their actions by the board of directors.

It is important to choose the right set of people for the position of the board of directors. Apart from business owners, the board should include outsiders and women as it will promote diversity and generate different ideas . Thus it is to be noted that board of directors have a specific purpose to fulfill and the organizational members should understand this purpose and work towards fulfilling the goals and objectives of the organization .