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A board of directors (often abbreviated as a “board”) is an executive committee responsible for the management of a company or other business entity. The number and composition of a board could differ depending on the nature and the laws of the business entity. Bylaws, the constitution and other governance documents of the company also play a significant part in determining the power of a board. A board may be charged with many responsibilities ranging from setting strategy and monitoring performance to directing the management team and ensuring accountability for all members.
The most successful boards keep detailed minutes of every meeting. They assist absent members to catch up on what transpired and ensure that obligations and rules are clearly defined. They also serve as an important record of the board’s decision-making process.
A well-run board will have a pool of candidates who are qualified to choose from when an open seat is made available. Possessing a database of prospective directors can help to make the process easier for recruitment. This is especially important when it comes time to recruit new talent or professionals from certain industries.
It’s no secret that the most effective and efficient boards are diverse. This is evident by gender, age, and ethnicity. It also illustrates the context, expertise and abilities. It is also the case that diverse perspectives make for the most productive and enjoyable gatherings. This is why a governance training program should include topics like diversity of thought, discussion and debate.
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