Responsibilities of a Board of Directors
The job of a board member requires the commitment of a significant amount of time. Meetings can be lengthy and include reviewing financial documents, discussing legal issues, as well as strategizing about the goals of the company.
It is the responsibility of the board member to prioritise the corporation’s interests over their own personal interests in order that they are able to effectively represent and fulfill the company’s mission. Board members must also act in good faith and not use their position to gain personal advantage. This principle is typically reflected in the company’s rules for governance.
Attention to community relations is a primary responsibility for non-profit organizations. This could include working with business, residents, and elected officials to create new programs or initiatives. This type of engagement can help a board be more sensitive to the needs and expectations of those it serves.
Board members are expected to follow all corporate governance rules. This is often more important than their ethical statements. Board members are required to conduct business in accordance with the policies of the corporation and must research all aspects of an issue prior to deciding.
To ensure a balanced board, it is essential that the board of directors are composed of both inside as well as outside directors. A mixture of view both brings a diverse array of experiences and perspectives to the table which can benefit a company or an organization.
