A board of directors is a governing group of members who serve as custodians of shareholders’ interests and ensure the long-term success of an organisation. Comprised of highly experienced individuals with a range of talents, a well-functioning board is essential for any business.

Traditionally, boards have supported and approved strategies suggested by managers while overseeing their management teams. A well-designed and crafted board can provide leadership that is proactive in key areas such as corporate strategy and vision as well as risk and opportunity in the areas of talent, sustainability, and succession of leadership.

The board of a company is usually made up of both insiders and outsiders. Inside directors are executive of the company, whereas an outside director isn’t employed by the company. To be considered an independent director, one must not have significant ties to the company.

When you are putting your board, you should consider people who are passionate about the mission of your organization and have a vast industry knowledge. It’s also essential to include a mix of people with varying skill sets that can contribute to creative problem solving, innovation, and strategic thinking. You should also look for specialists in specific areas for example, finance, marketing or capital raising.

It’s important to realize that as an officer of the board, you have fiduciary responsibility and are legally accountable for the company’s decisions at a high level. Additionally, if you’re shareholder, you are entitled to the right to vote on board members during the proxy season. If you’re planning to vote for a board member, make sure to go through their proxy documents carefully and ensure they are independent.

he said post about how to write a good board report