www.boardroomnow.info/working-board-vs-governance-board
Directors of boards have three formal responsibilities that every member must adhere to. Duty of Care Board members are legally required to act in the best interests of the company and make decisions keeping the mission of the company at the forefront. Duty of Loyalty – All members must put aside their own professional and personal interests when making decisions on behalf of the company. Obligation to obey — Every member has an legal obligation to ensure that the business is in compliance with all applicable laws and adheres to sound governance standards.
Boards of directors perform more complicated responsibilities than these three. These responsibilities vary based on the specific requirements of the particular organization. For example If your company is a publicly traded corporation there’s a good chance that one of your board responsibilities includes supervising the CEO and making sure the financial statements are accurate. If you’re a startup within your business the board might be more on setting goals for the company’s strategic direction and determining the direction of your business.
Another aspect of the board’s responsibilities is ensuring the proper balance of risk management. For instance, your board may need to step in and combat any issues that threaten your company’s reputation even if it’s their legal or ethical obligation. The board must also ensure that their members understand the risks that come with being a member of their board and are able to manage these risks appropriately.
All board members play an essential and unique role in helping your business grow. It’s important to understand your board’s responsibilities, and how they relate with the company’s goals. Aprio’s Board Portal software, for example, can help you streamline your duties and run meetings efficiently.