Boards of directors are responsible for a range of tasks, ranging from financial oversight and determining the best way to manage the resources of an organization. It is a highly-respected position which requires dedication and commitment from anyone willing to show at meetings without pay and read through budget documents and assume legal responsibility for a company. It is important that anyone who wants to join the board of directors for a company knows what their specific job duties are prior to signing up to the position.
There are special boards as well as the governing board, that focus on certain areas, like marketing, fundraising, branding and community connections. They are typically comprised of members from inside and outside directors that bring their different perspectives and expertise to the table.
Board members’ primary responsibility is to ensure that they comply with their legal obligations. These are usually broken down into three broad categories.
Duty of Care
The legal responsibilities of board directors in this field revolve around making decisions based upon the best interests of the company, and making sure that their choices are in accordance with all applicable laws and reporting requirements. This involves ensuring that they are familiar with the M&A transaction legal organizing documents of the company and the board’s bylaws.
A board of directors should also be active in promoting their activities and try to build positive public relations for their organization. This is a responsibility that should be a natural to the most passionate and committed board members but it can be a struggle for others who might not be as involved in their promotion of the organization’s work.