Boards of directors are required to fulfill three formal responsibilities, which all members are required to follow. Duty of Care Board members are legally bound to act in the best interest of the company and take decisions that keep the mission of the company at the forefront. Duty of Loyalty: All members must put aside their personal and professional interests when making decisions on behalf of the company. Duty of Obedience – Each member is legally required to ensure that the organization abides by all applicable laws and adheres to standards for good governance.

Boards of directors perform more complicated duties than the three mentioned above. The duties of directors vary based on the needs of each organization. If your company is a publicly traded business the duties of your board likely include overseeing the CEO and making sure that financial statements are in line with the law. If you’re a startup within your company, your board may focus more on setting strategic goals and determining the direction of your business.

Another aspect of the responsibilities of the board is ensuring the proper balance of risk management. For instance, your board could be required to intervene and combat any issues that threaten the reputation of your business even if it’s not their legal or ethical obligation. Boards should also make sure their members are aware of the dangers of serving on their boards and are equipped to manage the risks in a responsible manner.

Ultimately, all board members have a crucial and specific role to play in helping your company grow. It’s crucial to be aware of the roles and responsibilities of your board members and how they relate to your organization’s strategic goals. Aprio’s software for board portals, for example can help you streamline your tasks and conduct meetings efficiently.

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