What is a board of directors?

A board of directors is a group of people elected by the shareholders of a company which has the authority to make key decisions for the company. The board of directors is responsible for overseeing the larger operations of the business including corporate strategy, financial planning, and major decisions such as acquisitions and mergers. In Michigan, the board of directors must be appointed in accordance with the company’s articles of incorporation and the Michigan Business Corporation Act. Generally, the board of directors consists of between three and nineteen individuals depending on the size and purpose of the company. Board members are elected by the shareholders and typically serve a one or two year term. The exact terms of the board are determined by the company’s articles of incorporation. When the board members are elected, they are then responsible for exercising a certain level of oversight and control over the company’s operations and finances. The board of directors are ultimately responsible for the company’s success and failure. They must possess the necessary skills and knowledge to manage the company’s operations and make sound decisions that will benefit the company’s shareholders. As such, board members must be elected carefully and thoughtfully, making sure to choose individuals with the right skills and knowledge to help the company succeed.

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What is a board of directors?

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