A Supervisory Board is a governing body responsible for overseeing the management and strategic direction of an organization, typically in corporate or nonprofit settings. It plays a crucial role in ensuring transparency, accountability, and compliance with legal and ethical standards.

The board is composed of independent members who provide expertise and guidance while monitoring executive actions. Their responsibilities include approving financial reports, evaluating management performance, and ensuring that company objectives align with stakeholders’ interests. In many cases, they also oversee risk management, corporate governance policies, and regulatory compliance.

Supervisory Boards are common in dual-board systems, particularly in European countries like Germany and the Netherlands, where they exist separately from the executive management board. Unlike the executive board, which handles daily operations, the supervisory board primarily focuses on long-term strategic decisions and oversight.

Members of a Supervisory Board are typically appointed based on their experience and expertise in relevant industries. They may include professionals from finance, law, business, or other specialized fields.

A well-functioning Supervisory Board enhances corporate governance, strengthens investor confidence, and ensures sustainable growth. By maintaining independence from management, it provides unbiased oversight, ultimately contributing to the organization’s long-term success and stability.