A fundamental practice for board members and the CEO is to draw a clear line between the role of management and the role of the board. One of the most important jobs of the board of directors is to hire and, if necessary, fire the CEO. The board's role is not to act as the CEO. They have to select a leader that they have confidence in, and provide advice and counsel to help the CEO guide the company forward.
The CEO needs to be very clear with with the board to set appropriate boundaries and a clear understanding of their respective roles. Some decisions, particularly decisions that have significant financial impact or strategic direction impact, may require board approval, and the CEO and board need to be clear on the guard rails within which the CEO and management may operate autonomously, versus when they must seek board input and approval.
Can management commit to a capital lease or a real estate lease? Can they borrow without board approval, and if so what is the limit? Does the board need to approve the budget, and at what level of detail? Can management change strategy or kill a product or radically change the pricing model? All of these questions need clear answers to avoid conflicts or worse down the road. Without an understanding of the guard rails, the role of the board regarding governance is suspect. The worst outcome is that the board becomes an irrelevant rubber stamp, and board meetings are simply status updates with no governance.