A board is a key responsibility for corporate governance, which is to ensure that an organization is operating legally and in the best interest of shareholders and other stakeholders. This role involves operating independently of management and paying attention to the company’s biggest concerns rather than its day-today operations.
The board is responsible for the company’s strategies and operations and policies, setting the policy, managing risk, and making other decisions which are reserved to it. The board also selects as well as oversees and plans the succession of the CEO as well as the performance of that CEO. It also decides on a company’s culture and mission.
It also promotes shareholder interests, ensures that financial information is accurately reported, and ensures that investors are provided with all the information that could affect their investments. It also takes steps to protect the integrity and reputation of a business and stop fraud. It is essential to encourage continuous education among directors, particularly regarding new technologies, critical issues like environmental Governance, Social and Governance (ESG) and global crises that impact the way a business operates.
A well-formed structure of the committee, with the chair and secretary is crucial to efficient governance. It is crucial to establish an environment of collaboration and open communication among all members of the committee. The secretary of the committee will help determine the agenda, as well as take minutes of meetings and distribute them to all members of the committee.
A committee should be able to trust the reports, recommendations and opinions of its advisors. It is crucial that the committee is aware of the role of these advisors and assesses their credentials.