The responsibilities of directors for boards of director consist of three formal responsibilities that all members must abide by the duty of care- Board members have the legal obligation to act in the best interest of the organization and to make decisions keeping the purpose of the continue reading this business in mind. Duty of Loyalty -- Every member must put their personal and professional interests aside when making decisions for the company. Duty of Obeyance - Every member is legally required to ensure that the company abides by all applicable laws and abides by standards for good governance.
Beyond these three responsibilities, boards of directors have a broader array of responsibilities that are adapted to the specific needs of each organization. For example If your company is a public corporation then the majority of your board responsibilities includes overseeing the CEO's performance and making sure financial statements are accurate. If you're a young company within your company your board could be focused more on setting strategic goals and determining direction of your business.
A board's responsibility also includes making sure that there is a balance in the management of risk. Your board may be required to intervene in a situation that could harm your company's image, even if they are not legally or ethically responsible. The board must also ensure that their members understand the risks of serving on their board and are able to handle these risks in a responsible manner.
In the end, all board members have a vital and unique role to play in helping your business succeed. Therefore, it's vital to have a clear understanding of the roles and responsibilities of your board members and how they relate to your organization's strategic goals. Fortunately, tools like Aprio's board portal software can help you manage your responsibilities and manage meetings efficiently.