<P> The role and responsibilities of a board of directors vary depending on the nature and type of business entity and the laws applying to the entity (see types of business entity). For example, the nature of the business entity may be one that is traded on a public market (public company), not traded on a public market (a private, limited or closely held company), owned by family members (a family business), or exempt from income taxes (a non-profit, not for profit, or tax - exempt entity). There are numerous types of business entities available throughout the world such as a corporation, limited liability company, cooperative, business trust, partnership, private limited company, and public limited company . </P> <P> Much of what has been written about boards of directors relates to boards of directors of business entities actively traded on public markets . More recently, however, material is becoming available for boards of private and closely held businesses including family businesses . </P> <P> A board - only organization is one whose board is self - appointed, rather than being accountable to a base of members through elections; or in which the powers of the membership are extremely limited . </P> <P> In membership organizations, such as a society made up of members of a certain profession or one advocating a certain cause, a board of directors may have the responsibility of running the organization in between meetings of the membership, especially if the membership meets infrequently, such as only at an annual general meeting . The amount of powers and authority delegated to the board depend on the bylaws and rules of the particular organization . Some organizations place matters exclusively in the board's control while in others, the general membership retains full power and the board can only make recommendations . </P>

The board of directors of a public stock company consists of