The responsibilities of the management board are determined by an organization’s legal structure and bylaws, and the specific powers the board holds could be outlined in the bylaws as well. Whatever their specific terms they do not hold unlimited power; they delegate decision-making to senior managers (or in the case of non-profits, staff). The board’s ultimate function is to decide if the performance of the organization as a whole is satisfactory.
In the case of public companies directors are legally required to act as fiduciaries, representing shareholders of shares/stocks and ensuring that management doesn’t spend money, deplete assets, or break the law. In a way the board must be able to evaluate the CEO’s performance and take decisions about the compensation of the CEO.
Many boards are involved with several herbboardroom.com/the-difference-between-governance-and-management/ other tasks as well. This could include risk and resilience management sustainability, corporate strategy, and technology and digitization. To achieve this, boards must be able to take on more responsibility and push harder to stay on top of any new issues that arise.
However, if the board begins to interfere with the duties of management, either by making decisions that are only made by the full board, or by taking on the management responsibilities, it is at risk of disrupting a structure that was specifically designed to ensure high-efficiency organization success. In fact the structure could even increase turnover in the chief executive officer and other managers as they lose faith in the abilities of the board to control things when they go wrong.