Boards of directors are accountable for a variety of responsibilities, ranging from financial oversight to determining the best way to manage the resources of an organization. It is a highly-respected position that demands commitment and dedication from anyone willing to show at meetings that are not paid and pore over budget documents and take the legal responsibilities of a company. It is important that anyone who is interested in joining a company’s board of directors understands what their real duties are before they commit to the job.
Apart from the governing board of a corporation There are also special boards that focus on specific areas, such as fundraising marketing, community brand awareness and connection. These boards are usually comprised of an assortment of directors from both sides who bring their different perspectives and knowledge to the table.
The most important aspect for any board member is to make sure that they fulfill their legal obligations, which are generally broken into three broad categories:
Duty of Care
In this regard the board director’s legal obligations revolve around making decisions in the best interest of the company. They must also ensure that their decisions comply with all relevant laws and requirements for reporting. This includes making them familiar with the legal documents of the business and the bylaws of the board.
A board of directors must also be actively promoting their work and work to establish positive public relations for their company. This responsibility should come naturally to the most passionate and committed board members but it continue reading this can be a struggle for others who may not be as active in their promotion of the organization’s work.