Boards of directors responsibilities include financial oversight, as well as determining the best way to manage organizational resources. It is a position of high responsibility that requires commitment and dedication. It is crucial that anyone who is interested in joining the company’s board of directors understands what their real tasks are prior to committing to the job.
There are special boards that are in addition to the governing board that focus on certain areas, such as marketing, fundraising, community engagement and brand awareness. These boards typically consist of comprised of inside and external directors, who have different perspectives and experience.
The most important aspect of the job for any board member is to ensure that they meet their legal obligations, which are generally broken down into three broad categories:
Duty of Care
In this area the legal obligations revolve around making decisions in the best interest of the company. They also have to ensure that their decisions are in compliance with all applicable laws and report requirements. This includes educating them on the legal documents that the organization has and the board’s bylaws.
A board of directors should also actively promote their work and work to establish positive public relations for their organization. This obligation should be natural to the most passionate and dedicated board members, but it is something that could be a problem for others who might not be as involved in their promotion of the organization’s work.