What is the Board of Directors?
Definition of Board of Directors
The Board of Directors (typically shortened to 'the Board') is responsible to the shareholders, who own the company, for the day-to-day running of the company.
For example, it's up to the Board to make sure that the company doesn't keep trading if it can't pay its debts, and to look after the company's equipment and other assets. If a company's computers are stolen because a door was left open, ultimately this is the responsibility of the Board.
In a small company, there may be only one director, who is often also the company's only shareholder. It's rare to hear references to 'the Board" if there is only one director in a company.
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FreeAgent's Chief Accountant Emily Coltman is available to answer your questions in the comments.