Boards of directors are accountable for a myriad of responsibilities, from financial oversight to determining the best way to manage the resources of an organization. This is a position of high rank which requires dedication and commitment from those who are www.boardroomnow.info/working-board-vs-governance-board willing to show up for unpaid meetings, pour over budget documents, and accept the legal responsibility for a business. It is vital that anyone interested in joining the board of directors of a company knows what their actual job duties are prior to signing up to the position.
There are special boards in addition to the governing board that focus on certain areas, like fundraising, marketing, or brand awareness and community connection. These boards typically consist of comprised of inside and external directors with different perspectives and expertise.
The most important aspect of the job for any board member is to make sure that they comply with their legal obligations, which can be broken into three broad categories:
Duty of Care
In this particular area the legal responsibilities revolve around making decisions that are in the best interests of the company. They also have to ensure that their choices are compliant with all applicable laws and report requirements. This includes making them familiar with the legal documents of the business and the board’s bylaws.
It is also important for a board of directors to actively promote their work and strive to create public relations that portray their organization in a positive image. This should be a natural obligation to the most enthusiastic and dedicated board members, but it is something that could be a challenge for other members who may not be as active in their efforts to promote the work of the organization.