Boards are unique leadership structures with enormous power. They are accountable to those who are both inside and outside the organization. Yet they operate within a flexible structure that is only limited by guidelines for each state and the collective decision of a board to change its composition and structures.
While boards have a lot of responsibilities but they should concentrate on governance and oversight decisions while delegating operational matters to the executive team, including the CEO. This includes establishing guidelines and a system of governance that will guide their actions and those of the managers. It also involves focusing on legal issues such as compensation, conflicts of interests, community benefits and the CEO’s evaluation.
A good governance structure is crucial to the work of the board. It should include clear documentation on the roles and responsibilities of every committee member and director. It must also be readily accessible to all directors through a board portal. This will allow directors to prepare efficiently for meetings and keep discussions on the board focused on the primary issues of the meeting. It also facilitates better communication between members and more smoothly transitioning when board members rotate.
A good governance system should include the appointment of an independent director who is accountable for the smooth running of meetings as well as setting the agenda. In addition, it should include the schedule of executive sessions in Data synchrony accordance with the requirements of the stock exchange and a provision for directors to meet individually with the CEO in the absence of management.
