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The Board of Directors is essentially the management body for the corporation. Responsibilities of the Board of Directors include
establishing all business policies and approving major contracts and undertakings. In addition, the Board may also elect the President.
Ordinary business practices, however, are carried out by the Officers and employees of the corporation under the directives and supervision of these Directors.
When considering which individuals shall serve on your corporation’s Board of Directors, please consider the following:
- Directors must act collectively pursuant to a vote.
- The Board of Directors must meet on a regular basis. Monthly or quarterly is acceptable, however, the meeting MUST occur at least once per year.
- Board members must be trustworthy as they have a fiduciary duty to act in the best interests of the corporation and cannot put their own interests ahead of corporate interests and concerns.
- Board members must be prudent and not act negligently.
- Meetings must observe corporate formalities.
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