Boards of Directors are accountable for a myriad of responsibilities, ranging from financial oversight and determining the best way to manage the resources of an organization. It is a top-ranking position http://www.boardroomnow.info/what-is-the-difference-between-oversight-and-management/ that requires dedication and commitment from anyone willing to show in unpaid meetings, pour over budget documents, and accept legal responsibility for a company. It is important that anyone considering joining the company’s board of directors is aware of what their job duties are before they commit to the position.
Aside from the governing board of a corporation, there are also special boards that are focused on specific areas, such as fundraising marketing, community branding awareness and connection. These boards usually consist of a mixture of inside and external directors, who have different perspectives and skills.
Board members’ most important task is to ensure that they comply with their legal obligations. They are typically broken down into three broad categories.
Duty of Care
In this particular area the board director’s legal obligations revolve around making decisions that are in the best interest of the company. They must also make sure that their decisions are in compliance with all applicable laws and reporting requirements. This includes familiarizing them with the legal documents of the organization and also the bylaws of the board.
It is also important for boards of directors to actively promote the work they do and strive for public relations that paint their organisation in positive light. It should be simple for the most enthusiastic and dedicated members of the board to carry out this obligation, however it can be a challenge for those who are not as active.
