The Board is the executive body of a public limited liability company, LLC, cooperatives, foundations and other legal entities, representing these institutions and being responsible for the implementation of its goals, contracts or commitments entered into.
Commonly it is a small group of people appointed by the Board of Directors or the General meeting of shareholders. Regardless of the obligations of the members of the Board, persons appointed may serve various functions within the enterprise at different positions. The activities of the Board is subject to the control of the Supervisory Board.
Some board members are also directors, employees working at the highest management level. External directors could be elected to the Board to perform tasks in specific area of expertise, ie.: financial management, legal issues, etc. However, they are not full-time staff employed by the organization. The Board plays an important role in arranging the company's strategy and monitoring its correct implementation. The Board also has insight in all the important decisions taken by the senior management and determines the height of the remuneration of the managers at this level.
- Berger, A. N., Kick, T., & Schaeck, K. (2014). Executive board composition and bank risk taking. Journal of Corporate Finance, 28, 48-65.