The Board of Directors and Stakeholders

The board of directors is accountable for the company, organization or business. The members of the board are volunteers and do not receive any compensation. They are expected to attend meetings and prepare for them. They also be a part of other committees. They are accountable for maintaining the integrity of an organisation and are required to sign a conflict of interest https://boardroomnyc.com/role-of-the-board-in-strategic-planning statement.

Depending on the nature of business the number of directors may be different based on the type of business. Smaller companies typically choose a board with five to seven members, while larger organizations require at least nine to eleven directors. The selection of the board members should be dependent on the size, complexity, function and representation requirements of an company. It is important to have a variety of board members who have a wide range of abilities as well as knowledge and experience.

Board members should be passionate about the business and committed to its success. A good board member should also be a nimble thinker and be able to identify alternatives that can propel an organization forward. A good board member should be a challenger and play devil’s advocate to find out whether the assumptions and ideas of a board member are sound.

A good board member should also be able to raise money for a business. They should be able to leverage their personal connections and position within the community to attract investors. Most often, boards organize fundraisers like galas, events, campaigns and auctions to aid in meeting the company’s financial goals.