The role of the board in corporate governance is to ensure that the organization operates legally and in the best interests of shareholders and other stakeholders. This role requires independent functioning of management and paying attention to the company’s biggest issues, not just the day-to-day activities.
The board is responsible for the management of risk and the strategy and operation of a firm, and other decisions that are made by it. It also selects and oversees the performance of the CEO and the CEO succession planning process and also establishes the company’s culture and mission.
It also protects the interests of shareholders, ensures financial data is accurately reported and ensures that investors receive all information that could affect their holdings. It also takes steps to safeguard the integrity of a business and stop fraud and deceit. Directors should be encouraged to be online document management informed regularly, especially about emerging technologies, important issues such as environmental governance, social, and governance (ESG) or global crises that affect the way that businesses are operated.
A well-constructed committee structure, with the secretary and chair is essential in the effective management. It is important to establish an environment of open communication and collaboration between all members of the committee. The secretary of the committee will create the agenda, keep minutes of meetings, and distribute them to members of the committee.
A committee should be able to rely on the reports, advice, and opinions of its advisers. It is crucial that the committee knows who these advisors are and evaluates their qualifications.
