Board of Directors

The “Board of Directors” is a group of individuals elected to represent Shareholders and oversee the activities and strategic direction of a Corporation or organization. They are responsible for making significant decisions, including approving Budgets, hiring executives, and ensuring the company adheres to legal and ethical standards. Board members are typically chosen based on their expertise, experience, and ability to contribute to the organization’s goals.

For example, in a Publicly Traded Company like Apple Inc., the Board of Directors includes members from various backgrounds, such as technology, finance, and law, who guide the company’s strategy and governance. In contrast, a non-profit organization might have a Board of Directors composed of community leaders and subject matter experts who help steer the organization’s mission and programs.

A notable case is the Enron scandal, where the Board of Directors failed to act on warning signs regarding the company’s unethical accounting practices, leading to one of the largest corporate bankruptcies in history and significant legal consequences for many involved.