The Role and Responsibilities of a Board of Directors

A board of directors is a collection of elected individuals who provide expert guidance and oversight of a business. This group operates independently of management and is focused on the company’s major issues instead of the day-today business. A company’s board is the obligation of a fiduciary to make sure that the company operates lawfully and in the best interest of shareholders and other stakeholders.

A successful board will have the right combination of leadership abilities, governance knowledge, and experience to serve as a significant asset to the company. Board members must be more than “yes people”; they should have the courage to challenge managers when necessary and provide an alternative view. In addition to the governance responsibilities of an executive board, it’s important for a board to actively engage with its stakeholders, including employees, customers, suppliers and the communities that are affected by the business’s operations and strategy.

A board will also decide on corporate policies and ensure the implementation of a strategic plan, and examine its effectiveness. The board will also be able to evaluate the CEO, and if needed, participate in senior management reviews with the CEO. A board can also help the company establish relationships with external stakeholders who are beneficial to the business. It will also communicate with investors, shareholders and shareholders regarding issues that impact the company’s business mandate and financial performance. This will include an assessment of the company’s financial risks and monitoring global developments, such as trade policies and geopolitical conflicts.

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