A board of directors is a governing body composed of members who serve as custodians of the interests of shareholders and safeguard the long-term success of an organisation. The board is comprised of highly experienced members with a range of talents and experience, a strong board is essential for any business.
Traditionally, boards have supervised the management teams while also approuving strategies suggested by corporate executives. A well-designed board can now provide leadership that is proactive in key areas like corporate vision and strategy, risk and opportunity as well as sustainability, talent and leadership succession.
A company’s board is typically comprised of both inside and outside members. An outside director is someone who is not employed by a firm. To qualify as an independent director, the person must not have any significant ties to the business.
When you’re assembling your team, look for people who are passionate and experienced in your industry. In addition, it is important to have a mix of people with varying skill sets who are able to provide innovative problem-solving as well as innovative and strategic thinking. You should also seek out experts in specific areas in areas such as finance, marketing and capital raising.
It’s crucial to understand that as an officer of the board you are accountable to the fiduciary and are legally accountable for the company’s top-level decisions. If you’re shareholder, then you also have the right to vote on board members during proxy voting season. If you are considering voting for a board member, be sure you review their proxy papers carefully and verify that they are independent.