A board of directors is a governing body composed of members who serve as custodians of shareholders’ interests and ensure the long-term stability of an company. It is composed of highly experienced people with a range of talents A strong board is crucial for every business.
Traditionally, boards have endorsed and approved strategies suggested by executives while overseeing management teams. A well-designed and crafted board can provide leadership that is proactive in key areas like corporate strategy and vision risk and opportunities development, talent, sustainability and succession of leadership.
The board of directors of a company typically consists of both inside and outside members. An outside director is a person who is not employed by a firm. To be considered an independent director, the director must not have connection to the company in any way.
When you’re assembling your board, look for those who are passionate and knowledgeable about your field. It is also essential to have people with diverse skills and abilities, who bring problem-solving and innovative thinking, as well as strategic thinking. You should also seek out individuals with specialized expertise in areas such as finance, marketing and capital raising.
It is important to know that you are legally accountable and have fiduciary obligations as an officer. If you are a shareholder, then you also have the power to cast a vote for board members during the proxy voting time. If you’re considering voting for an incoming board member, be sure to read through their proxy forms and make sure they’re independent.