what a board of directors does
a board of directors is responsible for overseeing and advising a company so that it functions as effectively as possible the board ensures that an organization operates lawfully and in the interests of the company s shareholders and other stakeholders such as its employees it operates independently of company management and day to day operations a board of directors considers important issues relating to the company its shareholders its employees and the public it s involved in the new york stock exchange and the nasdaq require listed companies to have boards with a majority of independent directors and to include independent directors on key board committees such as the audit committee 1