A board of directors is responsible for the company’s governance practices and helps to implement the company’s plan of action. It also ensures the company is operating in compliance with the law and in the best interest of shareholders and other stakeholders. The board can be made from a mix of insiders and outsiders, each elected to a specific period of time. The ideal board is well-rounded and diverse in capabilities, experience, as well as background. They will embody an organization’s most important values and demonstrate an adherence to the organization’s mission.
Boards must also be prepared to take on risks and make difficult choices. They should also demonstrate an understanding and ability to collaborate in a team-oriented manner. They should be able articulate the vision and strategic direction of their company and know how to create and execute plans.
Boards should be prepared to quickly react to changes in the business and social contexts. They should be proactive in the areas of potential and risk, managing talent and corporate finance.
To create a strong board, it’s a good idea to create a database of qualified candidates and invite applicants to apply as soon as openings become available. It’s as easy as posting an LinkedIn job ad or sending an email message.
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