Board of directors facts for kids
A board of directors is a special group of people who help guide a company or organization. Think of them like the leaders of a team. They make sure the company is run well and follows all the rules. They also help decide how money is spent and set important goals for the future.
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What is a Board of Directors?
A board of directors is a team of people chosen to oversee a corporation (a type of business) or another organization. Their main job is to make sure the company is managed properly and works towards its goals. They act like a guiding hand, making big decisions that affect the whole business.
What Do They Do?
The board of directors has several important jobs:
- They help organize how the business works every day.
- They choose the CEO, who is the main boss of the company.
- They look at the company's budget to make sure money is used wisely.
- They handle important money matters.
- They follow special rules called bylaws, which are like a rulebook for the company.
Working in Committees
To help with all their tasks, the directors often divide into smaller groups called committees. Each committee focuses on a specific area. For example:
- Audit Committee: This group checks the company's money records to make sure everything is correct and honest.
- Compensation Committee: This committee decides how much the top leaders of the company should be paid.
- Human Resource Committee: This group deals with important decisions about the company's employees.
Usually once a year, the board of directors invites the company's shareholders to a meeting. Shareholders are people who own a small part of the company. At this meeting, the board talks about how the company is doing and answers questions from the shareholders. It's a chance for everyone to stay informed about the business.
Images for kids
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Center for Interfaith Relations Board of Directors meeting
See also
- Consejo de administración para niños (in Spanish)
