A board of directors is a governing body of individuals who are the custodians of shareholders’ interests and ensure the long-term viability of an business. A solid board, comprised of people who have a wide range of expertise and skills is crucial to any business.
Traditionally, boards have supported and endorsed strategies proposed by executives while overseeing management teams. A well-designed board can now provide proactive leadership in key areas like corporate vision and strategy including risk and opportunity development, talent, sustainability and leadership succession.
The company’s board is typically comprised of both insiders and outsiders. An outside director is a person who is not employed by a company. To be considered an independent director, one must not have connections to the business in any way.
When assembling your board look for people who are passionate and have experience in your field. It is also important to have a mix of people with different skill sets who can provide creative problem-solving, innovation, and strategic thinking. You should also look for experts in niche areas, such as marketing, finance, or capital raising.
It is essential to be aware that you’re legally responsible and have fiduciary obligations as an officer. In addition, if you’re a shareholder, you have the right to vote on board members during the proxy season. If you’re considering voting for an officer, make sure to review their proxy papers carefully and make sure they are independent.
