The Role and Responsibilities of a Board of Directors

A board of directors is an elected group of members that provides expert guidance and oversight to a company. This group is independent of management and focuses on the major issues than the day-to-day business. The board of directors of a company has a fiduciary responsibility to ensure that the company is operating lawfully and in the best interest of shareholders and other stakeholders.

A successful board will have the right mix of leadership skills, governance knowledge, and experience to serve as a great asset to the business. Board members should be more than „yes people” and should be able to confront management when needed and offer an alternative perspective. A board must not just focus on its governance, but also work with all stakeholders including employees suppliers, customers, and customers as well as the communities who are affected by the company’s business operations and its strategy.

The board also sets company policies, and oversee the implementation of a strategic plan and examine its effectiveness. The board will assess the CEO and join the CEO in the evaluations of senior management if appropriate. The board can also help the company establish connections with other stakeholders that can benefit the business. It will also communicate with investors and shareholders about issues that affect the mission and the financial performance of the company. This includes analyzing the risk profile of the company’s financials and assessing the impacts of global developments such as trade policy, and geopolitical tensions.