Boards of directors are responsible for a myriad of tasks, from financial oversight and determining the best way to manage the resources of an organization. This is a position with high responsibility that requires commitment and dedication. It is crucial that anyone interested in joining a company’s board of directors knows what their actual job duties are before they commit to the role.
There are special boards as well as the governing board, that focus on certain areas, such as marketing, fundraising, brand awareness and community connection. These boards are usually a mixture of inside and external directors who have diverse perspectives and knowledge.
The most important aspect M&A transaction of the job for any board member is to ensure that they meet their legal obligations, which are typically broken into three broad categories:
Duty of Care
In this area the board director’s legal obligations revolve around making decisions in the best interest of the company. They must also ensure that their choices comply with all applicable laws and report requirements. This involves educating them about the legal documents of the business as well as the bylaws of the board.
A board of directors must be active in promoting their work and try to build positive public relations for their organization. This should be a natural obligation to the most enthusiastic and dedicated board members, but it could be a problem for other members who might not be as active in promoting the work of the organization.