Board corporate governance is the responsibility of a board of directors in advising and overseeing a corporation to ensure that the company operates legally and fairly, as well as in the interests of its shareholders and stakeholders. The boards accomplish this by being independent of the day-to-day operations and management of the company. The board makes sure that the company’s strategic plans align with its legal ethical and financial obligations. It also determines the major risks facing the company and the procedures for managing these risks, delegating the responsibility for some of these tasks to committees.
Many boards have a chair who is responsible for facilitating meetings, keeping an excellent atmosphere and setting the agenda. The chair’s other responsibilities are to stimulate discussion and debate and to make sure that important matters receive adequate attention. Board secretaries play an essential role, scheduling regular board meetings and creating agendas.
In addition boards are becoming more involved in a variety of areas, including strategy and risk management, sustainability, potential mergers and acquisitions as well as development of culture and Virtual Data Room Features talent. They are also expected have keen attention to ESG (environmental, social and governance) aspects that are becoming essential to investors and consumers alike.
To be effective, a board must have the proper structure and include members with diverse skills, knowledge and expertise. It is essential that members of the board have a deep understanding of the industries and sectors in which their companies operate. This is important for their ability to support and challenge management and bring the strategy of the company in line with the changing needs of investors and consumer expectations.