The responsibilities of directors’ boards vary from oversight of finances to determining the best method to manage organizational resources. This is a position of high rank that requires dedication and commitment from anyone who is willing to show up for unpaid meetings and pore over budget documents and assume the legal responsibilities of a company. It is crucial that anyone interested in joining the board of directors for a company knows what their specific job duties are before they commit to the job.
Apart from the governing board of a corporation there are special boards that are focused on specific areas such as fundraising, marketing or community brand awareness and connection. These boards are typically comprised of internal and external directors who have different perspectives and expertise.
The most important aspect of the job for any board member is to make sure that they comply with their legal obligations, which are usually broken down into three broad categories:
Duty of Care
In this particular area the board director’s legal obligations revolve around making decisions that are in the best interests of the company. They also have to ensure that their choices are in line with the applicable laws and reporting requirements. This includes educating them on the legal documents of the organization as well as the bylaws of the board.
It is also essential for the board of directors actively promote their work and work towards public relations that portray their organisation in an optimistic light. It should be easy for the most passionate and dedicated members of the board to fulfill this obligation, but it can be a challenge for those who are not as active.