A board of directors is a group of individuals who are elected to represent shareholders acting as fiduciaries, in making decisions and overseeing a company. They formulate policies and are independent of day-to-day management. They devise high-level strategies, and mentor and guide superior managers in their work. They are also vital in the management of crises.
The role of a board differs depending on the organization but generally, it focuses on safeguarding the interests of shareholders and in promoting efforts to maximize. It ensures that shareholders receive accurate and timely information, and encourages transparency when it comes to financial reporting and disclosure. It manages risks and engages proactively with stakeholders to foster positive relationships and ensure that corporate behaviour is in line with social expectations.
Selecting the best board members to be on your board is essential to the overall success of an organisation. It is essential to select people with the right mix of leadership, governance and business expertise to provide strategic guidance and oversight. They should be able effectively listen to different perspectives and engage in constructive debate, and they should embody the values that define your company.
It’s important to have an executive board that is as diverse as possible. Also having an inequitable number of directors can help break ties in decisions on key issues. Smaller companies typically choose between five and seven board members. Larger companies should aim to have at minimum nine to 11 directors on their board.
