A board of directors is an elected body that represents owners (shareholders) and provides direction and oversight to a company or organization. Based on the type of business the business entity could be listed on a stock exchange (public company) or privately owned by family members or other individuals (private or limited company), regulated or governed by public policy or law (commonly known as municipal corporations) exempt from taxes (nonprofits or tax-exempt) or traded on a stock market.

It is the responsibility of the board to support efforts and initiatives that maximize the value of shareholders ‘ investment their investment and ensure the security for financial interests. It also ensures that shareholders receive correctly reported financial data and facilitates continuous risk monitoring.

Some boards focus on strategic matters such as the development of talent and culture, risk and resilience management digitization and technology or mergers and acquisitions that could be in the near future. Others concentrate on oversight and governance. The best boards go beyond being more involved in a more lively and constructive discussions on these topics and providing positive feedback and input that helps management make the best decisions.

It is essential to select the appropriate people to serve on your board. They must possess the required abilities, experience and character to bring value to your company. They must also know and embrace your company’s core values. It is important that they can act quickly and swiftly during a crisis. In addition, they should be able to offer an innovative perspective and a wide array of expertise to assist the CEO in navigating difficult times.

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