What is the main function of the board of directors?

The primary function of the board of directors is to provide oversight and make policy decisions for the corporation. This includes establishing broad company strategies, ensuring that the organization complies with applicable laws and regulatory requirements, and representing the interests of the shareholders.

The board’s role is strategic rather than operational; they set the direction for the company while delegating the day-to-day management tasks to executive officers. This oversight function ensures that the company's management acts in the best interests of the shareholders and maintains accountability for their actions.

While the board may be involved in high-level discussions about marketing or employee compensation, those specific operational aspects are typically handled by management teams. The distinction between governance and management is crucial in understanding the responsibilities of the board in relation to the company as a whole.