Boards of Directors Responsibilities
Boards of directors responsibilities include three formal duties that all members must adhere to the Duty of CareBoard members are held to the legal obligation of acting in the best interest of the company and make decisions keeping the company’s goals in mind. Duty of Loyalty Each member must put his personal and professional interests aside when making decisions for the company. Duty of Obeyance Every member is legally obligation to ensure that the company complies with all applicable laws and adheres to sound governance standards.
Beyond these three obligations, boards of directors have a broader range of duties that vary according to the specific requirements of each company. For instance If your company is a public company then a major part of your board’s responsibilities is overseeing the CEO’s performance and ensuring that financial statements are accurate. If you’re a startup within your business your board could focus more on setting strategic goals and determining direction of your business.
A board’s role also involves making sure that there is a balance in risk management. Your board may be required to intervene in a crisis that may harm the image of your company even though they are not legally or ethically accountable. Boards must also ensure their members are aware about the risks that come with being a member of their board and are able to manage these risks appropriately.
Every board member plays an important and unique role in helping your business succeed. This is why it’s important to be aware of your board’s responsibilities and how they are connected to your company’s strategic goals. Fortunately, tools like Aprio’s board portal software can assist you in reducing your duties and conduct meetings efficiently.
http://www.boardroomnow.info/virtual-data-rooms-software-for-operational-moments/