Corporate boards function as an oversight mechanism between the management of a business and its shareholders. They are accountable for establishing guidelines, supervising the officers who run the day-to-day activities and ensuring that the company is legal and that its financial stability is safeguarded. They also serve as a liaison between the corporation and its stakeholders such as employees, clients, vendors, suppliers/vendors, community organizations and lenders.
To fulfill the tasks required, a board needs to have a broad range of knowledge and skills. Most boards will recruit members with diverse backgrounds who can provide advice and support in areas of concern. A board might want someone who has expertise in international finance, or who is familiar with a specific regulatory agency.
As a rule, the law requires that most boards have at least one officer. This ensures that a member of the board is aware of any issues that might be confronted by management and can respond accordingly.
As the general public gets more interested in their business the perception of as an “old-boy” network is changing. This has resulted in more seats becoming open to investors from the general public. However, it’s essential to consider the potential benefits and dangers of a particular job before applying.
