Your board of directors, ideally, will help you establish leadership and direction for your company. While your company management oversees day-to-day operations, your board is there to guide the overall direction of your corporation.

A board of directors also serves as a protection for the management of your company. If you’re having any problems with your company that are beyond your control, management is shielded by the fact that a competent board of directors is aware of the problem and working with you toward a solution.

With a board of directors in place, and voting on issues of importance to your corporation, the prospect of litigation decreases.