Boards of directors are responsible for a myriad of tasks, ranging from financial oversight to determining the best way to manage resources within the organization. It is a top-ranking position that requires dedication and commitment from anyone who is willing to show in unpaid meetings as well as read budget documents and assume legal responsibility for a company. Because of this, it is vital that people interested in joining a board of directors know what their job duties actually will be prior to accepting the role.
In addition to the governing board of a corporation There are also special boards that are focused on specific areas such as fundraising marketing, community branding awareness and connection. These boards typically consist of comprised of internal and external directors who have different perspectives and expertise.
The primary responsibility is to ensure that they comply with their legal obligations. They are typically broken into three broad categories.
Duty of Care
In this regard, a board director’s legal obligations are to make decisions in the best interest of the company. They must also ensure that their decisions comply with all relevant laws and requirements for reporting. This includes familiarizing them with the legal documents of the company and also the board’s bylaws.
A board of directors should also be active in promoting their activities and strive to develop positive public relations for their organization. This should be a natural obligation to the most enthusiastic and committed board members but it could be a challenge for other members who may not be as active in their efforts to promote the work of the organization.