Board of Directors Resolutions

The structure of the Board of Directors or Board of Trustees is among the most important factors that determines the future of a business or organization’s success. A well-structured board will ensure that all members are aware of their responsibilities and how to fulfill it, and will assist in putting the company or organization on the right path to achieve its desired goals.

The board is accountable for overseeing the executive board and determining the direction of the company. It is also responsible for the selection and removal of the CEO, setting the CEO’s salary, determining compensation for other executives in the company, and making crucial strategic decisions.

External or independent directors can be paid for their participation. They are non-executive directors who are not in executive positions within the company. They bring different perspectives to the board and are typically subject-area experts within the industry that the company is operating in.

A two-tiered board consists of the management board, which is comprised of executives from the company and the supervisory board that is comprised of directors who are independent. The supervisory board is accountable for ensuring that the management board’s operations are conducted in compliance with corporate laws and policies.

A advisory or consultative board is comprised of individuals who have a stake in the business. These include investors and customers. They can provide insights to the top executives of a business and offer different perspectives that may not be available within the organization itself. They can also assist with finding growth opportunities, and assist with the implementation of strategies that meet the company’s objectives.