Board of directors
A board of directors provides collective direction, oversight and accountability for an organisation under its governance framework. Its responsibilities commonly include strategy, major decisions, risk oversight, culture and monitoring executive performance. Exact legal duties and arrangements vary by jurisdiction and entity. The board can delegate activities to executives or committees while retaining the responsibilities assigned to it.
Worked example
A board approves a strategy and risk limits, appoints senior leadership and reviews whether the organisation delivers sustainable results. A specialist committee examines detailed evidence, but the board still considers the conclusions and decisions within its responsibility.
Common mistake
Do not equate board oversight with personally managing every transaction, or assume delegation to a committee removes the board’s accountability. Distinguish directors’ legal duties from voluntary code recommendations.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Supporting | September 2026–June 2027 |
| ACCA | SBL | Direct | September 2026–June 2027 |
| FIA | FBT | Supporting | September 2026–June 2027 |