Boards of Directors Responsibilities
Boards of Directors are accountable for a range of tasks, ranging from financial oversight to deciding how best to manage organizational resources. It is a position of high responsibility that requires dedication and commitment. It is essential that anyone who wants to join the board of directors of a company understands what their real duties are prior to signing up to the role.
Alongside the governing boards of a company, there are also special boards that focus on specific areas such as fundraising marketing, community brand awareness and connection. These boards are typically comprised of internal and external directors who have diverse perspectives and knowledge.
The most important aspect of the job for any board member is to ensure that they comply with their legal obligations, which are typically broken into three broad categories:
Duty of Care
A board director’s legal responsibilities in this area revolve around making decisions based upon the best interests of the company and making sure that their decisions are in line with all applicable laws and reporting requirements. This includes familiarizing them with the legal documents of the company and the bylaws of the board.
It is also crucial for the board of directors to actively promote their work and to strive for public relations that paint their organisation in positive light. This obligation should be natural to the most passionate and committed board members, but it could be a problem for others who may not be as involved in their promotion of the work of the organization.
