Startups · Entrepreneurship

What are the main responsibilities of a board of directors?

Kashif Jehangir Assistant Manager Administration at Private Company

October 3rd, 2016

From my understanding the board of directors really kicks in with formalities as soon as the institutional investors decide to invest in the startup. However, from your experience, what are really the responsibilities of those board members and the board itself?
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Tom Duffy

October 3rd, 2016

a great board increases revenue helps grow the company internationally and brings in new ideas 

Arthur Lipper Chairman of British Far East Holdings Ltd.

October 3rd, 2016

Primary responsibility of the Board of Directors in an investor financed company is to determine and effect if and when the CEO and other executives should be refunctioned or replaced.

Jeffrey Pearl Entrepreneur, CEO and Sales Leader

October 3rd, 2016

The Board should be providing guidance. Hopefully they are people who have already, "Seen the movie"

Doug Winter Founder and Director of Isotoma

October 3rd, 2016

I can really recommend this book: 

https://www.amazon.co.uk/Directors-Handbook-Duties-Responsibilities-Liabilities/dp/074946058X

It's very clear, not too long, and very practical.

Although it is based on UK law I imagine most of it applies relatively well to any common-law jurisdiction.

Tom DiClemente Management Consulting | Interim CEO/COO | Coach

October 4th, 2016

The primary function of the board is to assure the integrity of the company in all ways - financially, legally, morally. After that, they contribute to the growth and production of free cash flow in any number of ways.

Arthur Lipper Chairman of British Far East Holdings Ltd.

October 4th, 2016

The primary obligation the Board of Directors is to establish company objectives and monitor the performance of the management. I believe having employees of the company on the Board makes it more difficult for the Board to be effective in determining when or if the roles of some employees should be changed or terminated.