visit this web-site

A board of directors is legally accountable for the most important decisions, which include the hiring and firing of the chief executive officer, directing strategic direction, and making sure the company’s objectives are met. The board of directors is comprised of experts, respected people and former executives chosen from the community. They are responsible for setting the corporate governance.

A well-functioning board is clear on its mission and is open in its communication and respects diverse viewpoints. It also holds itself accountable to shareholders and stakeholders. It also includes independent board members that are free from conflicts of interest and have an optimistic view of the company’s future. A formal orientation process and building relationships with other members, and agreeing to meeting at the right time are essential.

A good board member is not only smart in business, but also curious. They can ask insightful questions to management and to other members which will challenge their thinking and lead to the most effective decisions. Having niche experience, such as capital-raising or sales knowledge can be a great advantage.

Boards are increasingly assuming additional responsibility, including strategic planning, risk and resilience management, diversity and inclusion, and technology and digitization. They must become more tech-savvy and play a bigger role in the hiring of CEOs and other top leaders. According to McKinsey, the COVID-19 pandemic made boards more proactive in addressing crises and planning for uncertainty.