What role does a Board of Directors play in a public limited company?

The Board of Directors plays a crucial role in a public limited company by controlling and overseeing the company's strategic direction and ensuring that it operates in the best interest of its shareholders. This involves setting long-term goals, making significant business decisions, and providing leadership while also holding the management accountable. The board has a fiduciary responsibility to protect the interests of shareholders, which includes establishing policies, approving budgets, and monitoring performance.

In contrast to the role of the Board, daily operations are typically managed by the company's executives, such as the CEO and other senior managers, who implement the strategies set by the Board. Individual franchises may operate independently and focus on specific market segments, but the Board's responsibility lies at a higher level, focusing on the overall governance of the entire company rather than on individual operational aspects. Additionally, while the Board may approve significant financial decisions, they do not conduct all financial transactions, as this responsibility usually falls to the finance team and other management personnel within the organization.