Boards of Directors are accountable for a range of responsibilities, from financial oversight to determining how to best manage organizational resources. It is a highly-respected position which requires dedication and commitment from anyone who is willing at meetings without pay, pour over budget documents, and accept the legal responsibilities of a company. It is crucial that anyone who is interested in joining a company’s board of directors knows what their actual job duties are prior to signing up to the role.
There are special boards, in addition to the governing board, that are focused on particular areas, such as marketing, fundraising, brand awareness and community connection. These are often made up of an amalgamation of directors from outside and inside who bring their own perspectives and skills to the table.
The most important aspect of the job for any board member is to ensure that they comply with their legal obligations, which are generally broken down into three broad categories:
Duty of Care
The legal obligations of a board director in this regard revolve around making decisions based on the highest interests of the company and making sure that their decisions comply with all applicable laws and reporting requirements. This involves educating them about the legal documents of the company and the board’s bylaws.
A board of directors must also be active in promoting their activities and strive to develop positive public relations for their company. It should be easy for the most passionate and committed members of the board to continue reading this carry out this duty, but it may be a challenge for those who aren’t as active.