Boards of directors responsibilities consist of three formal responsibilities that all members must abide by the duty of careBoard members have the legal obligation of acting in the best interest of the organization and to make decisions keeping the company’s goals in mind. Duty of Loyalty — All members must put their personal and professional interests aside when making decisions for the company. Duty of Obeyance Every member has a legal obligation to ensure the organization complies with all applicable laws and adheres to sound governance standards.
Directors of boards have more complicated responsibilities than the three mentioned above. These responsibilities vary based on the requirements of each company. If your company is a publicly traded company Your board’s responsibilities likely include overseeing the CEO and ensuring that financial statements are accurate. If you’re a young company within your business find more information your board could be focused more on setting strategic goals and determining direction of your business.
The board’s responsibilities also include the maintenance of a balance in risk management. Your board may be asked to intervene in a situation which could damage your company’s image, even if they are not legally or ethically accountable. Boards should also make sure their members are aware of the risks involved in serving on their board and are equipped to manage the risks appropriately.
All board members play an important and distinct role in helping your business grow. It’s important to be aware of the roles and responsibilities of your board members and how they are connected to your company’s strategic goals. Aprio’s board portal software, for example can help you streamline your tasks and conduct meetings efficiently.