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65288a64fe The rules that the board establishes for the company should be policy based. The board has a strategic function in providing the vision, mission and goals of the organization. 2) Provide direction for the organization. The articles of governance provide a framework but the board develops a series of policies. In most cases this is not a good model for a value-added business. The seven points below outline the major responsibilities of the board of directors. 4) Govern the organization and the relationship with the CEO. Introduction to Governance -- C5-70 Recruiting, Selecting and Developing Board Members and Managers -- C5-72 Board of Director Evaluations -- C5-73 Business Strategy and the Board of Directors -- C5-74 Governance Issues Unique to Start-up Businesses -- C5-75 Board of Director Educational Needs -- C5-76 . It is in charge of making sure the audit is done in a timely manner each year. This is often found in large boards, typically of 24 to 50 individuals.
Essentially it is the role of the board of directors to hire the CEO or general manager of the business and assess the overall direction and strategy of the business. Another responsibility of the board is to develop a governance system. 2) Proactive Board This model is of a proactive board that speaks as one voice. This refers to the board as a group and focuses on defining the rules of the group and how it will function. Conversely, management is not responsible for the overall policy decisions of the business. Examining and choosing the right model is important because it will impact the success of the value-added business. So it is natural for a director to think that this is how all boards function.