A board of directors is a body which oversees and safeguards the long-term interests of its shareholders. The board is comprised of highly experienced members with a variety of skills A strong board is vital for every business.
Traditionally, boards have overseen the management teams while assisting and accepting strategies proposed by executives of companies. A well-designed board can provide proactive leadership in key areas such as corporate strategy and vision as well as risk and opportunity as well as sustainability, talent and leadership succession.
A company’s board typically consists of both inside and outside members. Inside directors are executive of the company, whereas an outside director is not employed by the company. To be considered an independent director one should not have connections to the business in any way.
When you’re assembling your board, look for those who are passionate and knowledgeable about your field. It’s also important to include people with a variety of skills that can bring innovative problem-solving and creativity as well as strategic thinking. Also, you should look for people who have niche expertise such as finance, marketing and capital raising.
It is crucial boardable to understand that you’re legally responsible and have fiduciary responsibilities as board members. In addition, if a shareholder, you have the right to vote on board members during the proxy season. If you’re thinking of voting for a new board member, take your time reading through their proxy forms and make sure they’re independent.