The board of directors is an elected committee functioning at topmost level of an organization. It comprises appointed members who jointly oversee the activities of an organization. They are also known as board of managers or board of governors. Their responsibilities are mainly concerned with exercising power to determine various policies of the company.
The tenure of the members is a minimum of three years, which is subject to renewal after completion of the term. There are different procedures for electing the board. Normally, in a stock holding corporation, it is elected by the shareholders.
Their role entails strategic planning, handling finances, reviewing performance, and planning all the important activities of an organization.
Image of the Company
Since each member acts as an ambassador of the organization, their performance plays a key role in upholding the reputation of a company.
The delegates have to determine everything associated with the proper functioning of a company. The following points shall cover their duties in detail:
- Present views and provide input regarding the decision of the board as a whole.
- Evaluation of monthly financial reports and presenting them during the general meeting.
- Power to appoint a membership officer after reviewing all job applications.
- Function with the management to develop long and short-term plans.
- Determine the annual appraisal of the CEO taking into account the budget of the company.
- Controlling appropriate investment on credit union funds and approval of borrowings of credit union funds through external source.
- Establishing the duties of the management and employing termination order with a justified case.
- Approving loans to directors, managers, and committee members by exercising a vote.
- Amendments are proposed by the board after legal proceedings and are then approved by the regulatory authority.
- Power to appoint special committees and task forces in order to improve administration within the organization.
- Right to appoint new members of the board and the supervisory committee.
Thus, the board of directors shoulder responsibilities that play an important role in uplifting the performance of an organization. Their duties are in congruence with the vision and mission of the company.
This is achieved by a joint effort of the members in supporting organizational needs. They advise, oversee, direct, promote, and govern the objectives of the organization for its rapid progress and development.