Board of directors

Written by Fmi.Online Friday January 6, 2023
A board of directors represents an elected or an appointed body of members who are responsible for overseeing a firm’s activities to the benefit of its stockholders.


 The board is mandatory for all organizations – private, nonprofit, or governmental because it is held accountable for the firm’s policies and actions. For instance, if an organization acts in an irresponsible manner that harms consumers and the public benefit, the board members are held responsible for the consequences of the organizations’ actions. Generally, a board is acting within the framework of corporate governance, which includes the explicit and implicit contracts between the board and the company’s stakeholders concerning their responsibilities and rights and the procedures for monitoring and controlling the company’s operations to ensure that there are no conflicting interests between the stakeholders (management, employees, customers, government, community).

In a nutshell:

  • The board of directors is elected to represent shareholders’ interests.
  • Internal board members are not usually monetarily compensated for their work, but outside board members are paid.
  • The board makes decisions concerning the hiring and firing of personnel, dividend policies and payouts, and executive compensation.
  • A board member is likely to be removed if they break foundational rules, for example, engaging in a transaction that is a conflict of interest or striking a deal with a third party to influence a board vote.
  • A board of directors is elected by shareholders but nominated by a nominations committee.
Our Courses are designed to boost your career

Launch your career with Fmi’s Learning Pathway

Choose a learning pathway that best meets your needs and ambitions. Not sure which Fmi learning pathway is right for you? Explore our CareerBuddy videos for help and advice.

Investment banking pathway
  • courses-clock60+ hours
  • courses-desktop9 courses

Investment banking offers many exciting career opportunities for students. From Financial Analysts to Investment Management, and Sales & Trading to a wide range of roles in infrastructure such as IT, Risk or Compliance. This pathway is designed to help you understand the investment banking industry, the roles investment banks are recruiting for, and most importantly, help you to develop the practical skills you need to get into the industry and your preferred role whether this be as part of a school leaver, intern or graduate program.

FMI Online Student join-student-img2 FMI Online Student
55,000+ students currently enrolled
Global markets pathway
  • courses-clock70+ hours
  • courses-desktop10 courses

Global markets provide a range of important products and services to corporates, institutions and governments worldwide from executing trades and managing risk to providing quality research content. A key business area in all investment banks, global markets offers a wide range of career paths for students to consider across all functions and at all levels from school leavers to internships through to graduate programs.

FMI Online Student join-student-img2 FMI Online Student
85,000+ students currently enrolled
Asset management pathway
  • courses-clock50+ hours
  • courses-desktop8 courses

The asset management industry is a global industry worth over 100 trillion US dollars. It plays a crucial role in managing the assets of retail and institutional investors, offering a wide range of exciting careers in doing so. If you’re looking to forge a career in asset management, our Asset management pathway is perfect for you. We help you build the skills all asset managers are looking for and explore everything you need to know about the industry and the wide range of roles available in the sector

FMI Online Student join-student-img2 FMI Online Student
100,000+ students currently enrolled