A board of directors bears legal responsibility for making high-level decisions. This includes appointing and firing the CEO, directing the strategic direction of the business and ensuring that the company meets its objectives. The board is comprised of respected and knowledgeable individuals and former executives who are chosen from the community. They are responsible for establishing the corporate governance.
A strong board is one that is clear on its mission and is open in its communication and respects diverse viewpoints. It is also accountable to visit this web-site stakeholders and shareholders. It also includes directors who are independent who are free of conflicts of interest and have an eye on the long-term for the company’s growth. The importance of a formal orientation, creating relationships with members, and meeting at the right time is crucial.
Alongside business acumen, a good board member is also an intellectual and is capable of asking management and other members constructive questions that challenge collective thinking and help produce the best decision. Having niche experience, such as capital-raising or sales experience, can also be an asset.
Boards are increasingly taking on additional responsibilities, such as strategic planning as well as risk and resilience management as well as diversity and inclusion as well as technology and digitization. They must become more technologically literate, and play a bigger role in the hiring of CEOs and other top leaders. The COVID-19 epidemic has taught boards to be more proactive in addressing crises and preparing for uncertainty according to McKinsey.
