A board of directors is a body elected to represent owners (shareholders) as well as provide oversight and guidance for a business or organization. Depending on the nature of the business entity, it could be traded on an exchange (public company), privately held by family members or other individuals (private or limited company) or regulated by law or public policy (commonly referred to as a municipal corporation), or exempt from paying taxes (nonprofit or tax-exempt).
It is the duty of the board to encourage initiatives and activities that increase the value of shareholders ‘ investment their investment, and to ensure security for financial interests. It also ensures that shareholders receive financial information that is properly reported, and facilitates ongoing monitoring of risk.
Some boards concentrate their focus on strategic issues such as the development of talent and culture as well as resilience and risk management. Some boards are more interested in mergers and acquisitions. Some boards focus on overseeing and governance. The best boards go beyond and engage in more active and constructive discussions on these issues, and providing positive feedback and input to help management make best decisions.
Selecting the right people to join your board of directors is essential. They should possess the right skills, experience, passion and character to contribute value. They should also be able to comprehend and embrace your company’s core values. It is important to be able to react quickly and swiftly in a crisis. In addition, they should be Mastering Team Collaboration and Due Diligence with the Data Room Index able to offer a new perspectives and a wide spectrum of knowledge that will aid the CEO through difficult times.