Final answer:
The board of directors in the U.S. is primarily responsible for ensuring that a corporation operates in the best interests of its owners, the shareholders. They provide oversight for executives and make key decisions, although their effectiveness can be influenced by the executives and shareholder involvement.
Step-by-step explanation:
In the U.S., the chief role of the board of directors is to ensure that the corporation is run for the benefit of its true owners, the shareholders. The board acts as a first line of corporate governance, overseeing and directing company affairs and making decisions at the highest level. While the board is elected by shareholders, it is often influenced by the firm's top executives, who have a strong voice in choosing the board candidates.
Challenges such as insufficient shareholder knowledge or incentive to nominate alternative candidates can impact the efficacy of the board. Additionally, corporate governance includes the use of an auditing firm to verify financial records, as well as oversight by large investors like mutual funds or pension funds. However, there have been instances, such as with Lehman Brothers, where corporate governance failed to provide accurate financial information, leading to significant consequences for the company and its shareholders.