Boards of directors responsibilities cover everything from financial oversight to determining the best way to manage organizational resources. It is a top-ranking position that demands commitment and dedication from anyone who is willing at meetings without pay, pour over budget documents and take legal responsibility for a company. It is vital that anyone considering joining a company’s board of directors knows what their specific job tasks are prior to committing to the position.
There are special boards that are in addition to the governing board that specialize in specific areas, like marketing, fundraising, brand awareness and community connection. These boards are usually comprised of internal and external directors with different perspectives and experience.
The principal responsibility is to ensure that they comply with their legal obligations. These are usually broken down into three broad categories.
Duty of Care
In this area the board director’s legal obligations are to make decisions that are in the best interests of the company. They must also make sure that their decisions are in compliance with all applicable laws and reporting requirements. This is a requirement to ensure that they are knowledgeable about the legal organization documents of the company and the bylaws of the board.
A board of directors must also be active in promoting their activities and strive to create positive public relations for their company. It should be easy for the most passionate and dedicated members of the board to carry out this responsibility, but can be a challenge for those who are not as active.
