Boards of Directors are accountable for a wide range of responsibilities, from financial oversight to determining the best way to manage resources within the organization. This is a position with high responsibility that requires dedication and commitment. It is crucial that anyone who is interested in joining the board of directors for a company understands what their real duties are prior to signing up to the role.
There are special boards, in addition to the governing board, that specialize in specific areas, such as fundraising, marketing, or community engagement and brand awareness. They are typically comprised of an assortment of directors who are both outside and inside. They bring their different perspectives and knowledge to the table.
The most important aspect for any board member is to make sure that they are in compliance with their legal obligations, which are usually broken into three broad categories:
Duty of Care
In this area the board director’s legal obligations revolve around making decisions that are in the best interest of the company. They also have to ensure that their decisions are compliant with all applicable laws and reporting requirements. This includes ensuring that they’re well-versed in the legal organizational documents of the organization and the bylaws of the board.
A board of directors should also be active in promoting their activities and work to establish positive public relations for their organization. This is a responsibility that should be a natural to the most passionate and committed board members, however, it can be a struggle for others who might not M&A VDR be as involved in promoting the work of the organization.
