What does a Board of Directors do?

A company's board of directors provides the company with direction and advice. It is the responsibility of the board of directors to ensure that the company fulfills its mission statement. In doing so, the board of directors frequently sets the company's overall policy objectives. For these reasons, a good board of directors includes knowledgeable and experienced business people.
Typically, only one member of the board of directors is involved with the day-to-day activities of the company. This person is the Chief Executive Officer (CEO), and he or she acts as a liaison between the board of directors and the rest of the company. The CEO is responsible for communicating to the board of directors the daily status of the company, and for communicating and implementing the vision and policy objectives of the board of directors.
A well functioning board of directors acts as a top level advisor to the company. The entrepreneurs who start a company usually provide the initial vision and mission statement, and the role of the board of directors is to give advice on how to best implement this vision. A good board of directors will also let the company know when it is drifting away from its goals and objectives.