Boards are unique leadership structures that possess considerable power and responsibilities to those outside the organization and those within it. They operate within a flexible framework that is governed by state-by-state guidelines, and the collective will to change their own composition and structure.
The board has many responsibilities but should concentrate on oversight and management decisions. They should leave operational issues to CEOs and executive teams. This requires the development of guidelines and a governance framework to guide both their actions as well as the management’s. It also means focus on regulatory and legal issues such as compensation, conflicts of interests and community benefit as well as the CEO’s evaluation.
A well-functioning governance system is crucial to the work of a board, and it should contain clearly defined roles and duties of each director and committee. All directors should be capable of accessing and using the board portal. This allows directors to effectively prepare for meetings, and allows board discussions to keep their focus on the key issues of the meeting. It also supports better communication between members and a smoother transitions when board member rotations occur.
A good governance framework includes the appointment of an independent director who is responsible for the smooth running of meetings and sets the agenda. In addition to that, it should include scheduling of executive sessions in accordance with requirements for stock exchanges and a provision for www.contactboardroom.com time for directors to sit down with the CEO in the absence of management.
