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.
Sarbanes Oxley, or SOX, is all about establishing internal controls and procedures that are transparent and can be monitored and audited. Whether you are a public or a private board, you don’t want to find that the company has been operating in a fraudulent or illegal manner...
It is critical for a board to be engaged with management to a level that they clearly understand the market and strategy of the company, and they are intimately aware of, and familiar with, the financial, legal, and risk elements of the business.
