A board of directors is responsible for providing supervision of a business and its policies regarding governance, and offers support for the strategy proposed by the management. It is also responsible for ensuring that the company is operating legally and in the best interests of shareholders and other stakeholders. The board can be composed from a mix of outsiders as well as insiders, each elected for a specific period of time. The ideal board is multi-faceted and diverse in skills, experience, and background. They will embody an organization’s essential values and show an adherence to the organization’s mission.
Boards must also be prepared to take on risk and make difficult decisions. They must also display a deep understanding of their fiduciary obligations and demonstrate their ability to work in a manner that is team-oriented. They must be able to articulate the vision and strategic direction of their company and be able to create and execute plans.
Boards need to be prepared to react quickly to changes in the societal and business environment. They should be proactive when it comes to risk and opportunity, talent management and corporate finance.
To establish a strong board, it’s an ideal idea to build an applicant database and invite applicants to apply as soon as vacancies arise. It’s as easy as posting a LinkedIn job advertisement or sending an email announcement.
Write a Comment