Which party is typically responsible for oversight in a corporate structure?

In a corporate structure, the board of directors holds the primary responsibility for oversight. This body is tasked with supervising the management team and ensuring that the company is being run in a way that aligns with the interests of the shareholders. The board’s role includes setting strategic goals, approving budgets, and monitoring the performance of company executives. They play a crucial role in risk management and corporate governance, which involves ensuring compliance with laws and regulations.

While management teams operate the day-to-day functions of the business, they report to the board, which acts as a check on management's activities. Shareholders do have a voice in corporate governance, particularly through their voting rights during annual meetings, but they do not engage in the ongoing oversight of the organization. Employees contribute to the organization’s operations but typically do not have governance responsibilities or oversight over the management.