Boards of Directors Responsibilities
Boards of Directors Responsibilities
Boards of Directors are accountable for a myriad of responsibilities, ranging from financial oversight to determining the best way to manage organizational resources. It is a high-ranking position that demands commitment and dedication from those who are willing to show up for unpaid meetings and read through budget documents, and accept the legal responsibilities for a company. It is essential that anyone interested in joining the board of directors for a company is aware of what their job obligations are prior to committing to the position.
Aside from the governing board of a corporation, there are also special boards that are focused on specific areas like fundraising, marketing or community brand awareness and connection. These boards typically consist of composed of insiders and external directors who have different perspectives and skills.
The most important aspect of the job for any board member is to make sure that they are in compliance with their legal obligations, which are typically broken into three broad categories:
Duty of Care
In this regard the legal responsibilities revolve around making decisions in the best interest of the company. They must also make sure that their decisions comply with all relevant laws and requirements for reporting. This involves educating them about the legal documents of the organization and also the board’s bylaws.
It is also crucial for a board of directors to actively promote their work and to strive for public relations that portray their organisation in an optimistic picture. This is a responsibility that should be a natural to the most enthusiastic and committed board members, but it is something that can be a struggle for other members who may not be as involved in their promotion of the work of the organization.
