The role of Board of Directors is to
A) monitor management on behalf of shareholders
B) represent the interests of management to the shareholders
C) follow the directions of the Chief Executive Officer (CEO) of the company
D) ensure that managers' compensation is protected even when the company performs poorly

Question

Quizplus · Accepted Answer

The role of Board of Directors is to monitor and oversee the management of the company on behalf of shareholders. Their primary responsibility is to ensure that the company is being run in the best interests of the shareholders and to provide strategic guidance to management. They are not there to represent the interests of management or to follow the directions of the CEO. They are also responsible for setting compensation policies and ensuring that managers' compensation is aligned with company performance.

The Role of Board of Directors Is to