A board of directors provides oversight of a company as well as its policies regarding governance, and offers support for the strategy formulated by management. It also ensures that the company operates lawfully and in the best interests of shareholders and other stakeholders. The board could be made consisting of outsiders as well as insiders, each elected for a specific period of time. The ideal board is well-rounded, diverse and has a broad range of skills, experiences and backgrounds. They should reflect the organization’s fundamental values and demonstrate a commitment to its mission.
Boards must also be willing to take risks and make difficult decisions. They must also demonstrate a deep knowledge of their fiduciary duties and demonstrate their ability to work with others in a team-oriented way. They should be able communicate the vision and direction of their organization, and comprehend how to create and implement a plan of action.
Boards should be prepared to respond rapidly to changes in the social and business environment. They must be proactive in the areas of risk and opportunity, the management of talent and corporate finance.
A great way to establish a solid board of directors is by establishing an applicant database of qualified candidates and inviting them to apply for positions as soon as openings arise. It’s as easy as posting an LinkedIn job advertisement or sending out an email with a message.