The board of directors is responsible for the day-today operations as well as long-term strategies of an company, whether it’s a nonprofit or a business. It is the entity which has a fiduciary obligation to shareholders and other stakeholders.
The board is responsible for selecting and supervising the chief executive officer, and other management personnel. The board also approves and makes major changes in the direction of a company. Additionally the board typically advises the CEO and other executives on the strategic goals and capital allocation. It also provides advice on legal matters and risk management, as it is legally responsible for the top-level decisions made by an organization.
It is essential for board members to embody the principles of collaboration and open communication, which help build trust and ensure high-quality decision making. Board members must have experience in governance and leadership. It is also essential that the board members represent the company’s customers by incorporating a variety of races, genders and ages as well as geographical diversity.
Board members must also be able to spend a considerable amount of time. Over the last several decades board members have been reported to spend more time on their roles. As such, it is critical that when selecting board members, organizations ensure they evaluate the candidates thoroughly. This may include a formal orientation session to help new directors gain an understanding of the overview, objectives and the background of the business they will be serving on the board.
https://boardroomtoday.net/election-process-for-nonprofit-board-members/
