A board of directors assists a company function more efficiently and effectively. They act as a check-and-balance on management, providing strategic advice and oversight. They also help to ensure that decisions taken are in the best interest of shareholders. They assist businesses in maintaining compliance with the law and decrease risk. A board of director can comprise members who are outside or inside according to the type of organization. Inside directors are employee of the company. While an outside director is a significant shareholder or has an established reputation in their area of expertise.

The board of directors’ role is to ensure that the company operates in the best interests of all stakeholders including employees as well as investors, suppliers and vendors. They do this by formulating a corporate strategy and setting priorities, as well as providing constructive input and challenge on a range of topics like developing talent, culture resilience, sustainability, risk management as well as technology and digitization. A board of directors can be an integral partner to the CEO and his entire management team by doing this.

For an individual who is interested in a position on a board of directors is a highly respected position that looks fantastic on the resume and gives an opportunity to develop leadership abilities, expand knowledge of the industry and market, strengthen networks and become a savvy decision taker in a group setting. It’s important that potential directors are aware of the responsibilities involved and are willing to invest their time and energy in the position.

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