• Source link: https://bothsidesofthetable.com/startup-boards-ee3ad0389040
• TL;DR: The board comes up with the broader strategic direction in which the company moves, and the management executes that strategy
• How helpful?:4/5
• Topic Tags: Board of directors, management, protective provisions, governance
• Relevant questions addressed:
• How do the roles of management and the board differ?
• How does the board set the framework for management to make decisions?
• Summary bullet points
• Certain board actions, like raising new capital, require “shareholder consent”
  • These are often called “protective provisions”
• Role of management: run day-to-day business, make decisions within the framework agreed between management and the board
• Role of the board:
  • Come up with budget and strategy
  • Periodically (usually quarterly) review progress and make adjustments
  • Audit
  • Manage compensation for executives
  • Vote on key considerations
    • Budgets, financings, legal issues, hiring/firing CEO