The Role and Responsibilities of a Board of Directors

A board of directors is a set of elected individuals who provide professional guidance and oversight to an organization. This group is independent of management and focuses on the major issues facing the company rather than day-to-day operations. A company’s board is responsible for ensuring that the company operates in accordance with the law and in the best interest of its shareholders and other stakeholders.

A successful board will possess the right mix of leadership abilities as well as governance expertise and experience that can serve as a great asset to the business. The board members must be more than “yes people,” they must have the confidence to challenge management whenever required and offer a different point of view. In addition to the governance aspects of the board, it is essential for a board actively engage with its stakeholders, including employees, customers, suppliers and communities impacted by the business’s operations and strategy.

A board will also establish company policies and ensure the implementation of a strategic plan and monitor it for effectiveness. It will operation of your corporate boards also evaluate the CEO’s performance and assist the CEO in the evaluations of senior management when appropriate. A board will assist the company to establish relationships with stakeholders outside the company which can benefit the business. It will also communicate with shareholders and other investors regarding matters that affect the company’s mission and financial performance. This will include an assessment of the company’s financial risks and monitoring global developments like trade policies and geopolitical conflicts.