Responsibilities of a Board of Directors
Board members are expected to devote much of their time to their duties. Meetings can be lengthy and include review of financial documents, addressing legal issues and strategizing and goals of an company.
It is the duty of the board member to prioritise the corporation’s interests over their own personal interests in order to be competent to effectively represent and realize its mission. Board members must act in good faith and not utilize their position to gain personal benefits. This principle is often found in the rules for corporate governance.
A focus on community relations is an essential responsibility for non-profit organizations. This may involve working with business, residents, and elected officials in the development of new initiatives or programs. This type of collaboration can also help a board to be more sensitive to the requirements and expectations of the people it serves.
Board members must abide by the rules of governance and this is often a more important aspect of their responsibilities than their ethical declarations. Board members must conduct their activities in accordance with the rules of the corporation and are required to study all aspects of an issue before deciding on a vote.
It is crucial that the board is composed of both insiders and outsiders in order to maintain balance. A mixture of both brings a wide range of experiences and perspectives that can benefit a company or an organization.
