The Role and Responsibilities of a Board of Directors

A board of directors is a elected group of individuals who provides expert guidance and oversight to businesses. This board operates independently of management and focuses on the most important issues facing the business and not the day-to-day activities. The board of directors is responsible for ensuring that the company operates in accordance with the law and in the best interests of its shareholders and other stakeholders.

A successful board of directors will possess the proper mix of leadership abilities as well as governance expertise and experience to act as an important resource for the business. Board members should be more than just “yes people”; they should be able to challenge managers when necessary and provide an alternative view. The board should not just concentrate on its governance, but also be in contact with all stakeholders including employees, customers and suppliers, as well as the communities who are impacted by the company’s activities and strategy.

The board will also establish company policies, ensure the implementation of strategic plans, and also monitor their effectiveness. The board will also assess the CEO, and should website link it be necessary, take part in senior management evaluations with the CEO. The board can also help the company develop relationships with external stakeholders who are beneficial to the business. It will also communicate to investors and shareholders about issues that affect the business mission and the financial performance of the business. This includes an assessment of the company’s financial risks, monitoring global developments such trade policies and geopolitical conflicts.