The Board of Directors

The board of directors can be described as the hub of governance activity. In a public company setting, the board of directors is the single, most powerful body responsible for the governance of the company on behalf of its stakeholders, primarily the shareholders. Normally, the board consists of a mix of independent and non-independent directors, where the majority should be comprised of independent directors. As a designated leader of the board of directors, the chairman has sweeping influence over the company's destiny Depending on its needs, the board may form several subgroups or committees with a specific charge. The audit committee, also called the audit and compliance committee, is responsible for oversight on financial accounting and reporting processes of the company, internal controls over financial accounting and reporting, and regulatory compliance related to financial matters.