A board of directors is a body of
elected or appointed members who jointly oversee the activities of a company or organization.
Other names include board of governors, board of managers, board of
regents, board of trustees,
and board of visitors in case of non-profit
organization. It may also be called "the executive board" and
is often simply referred to as "the board".
Types
of BOD:-
For profit corporate boards
For
profit corporation the board of directors are elected by the shareholder of the
company. They are elected for managing company’s profit making operations. BOD
involves a ‘Chairmen’ who is usually appointed either by the shareholders or by
the BOD members. Based on the size of organization the ‘Chairmen’ also known as
‘CEO’. In the profit corporations the BOD is responsible for achieving the
profit goals, overseeing all the operations of the company and maintaining
balance in achieving company’s financial goals.
BOD of membership organization
BOD of non-profit organization
Advisory boards
A body that advises the board of directors and
management of a corporation but does not have authority to vote on corporate
matters. Professional organizations, municipalities, universities or nonprofit
organizations may have advisory boards. Retired members of organization attach
themselves with advisory boards. Advisory boards are not responsible to raise
funds, they usually curb appeal of the organization to whom they are attached.
