The responsibilities of the board of directors pertain to growth and profitability of a company. The board has an upper hand in determining the policies of the company taking into account its mission and vision. Let us look at their responsibilities in detail.
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.
The board members determine the planning and goal setting process in accordance with the mission statement. They play a vital role in determining the strategies of the company.
The panel takes into account the financial stability of the organization and providing the resources. They approve and monitor the budget and its contribution to shareholders and donors.
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.
Review of Performance
It is responsible to the chairman or the organizational head, and also its shareholders. It prepares a performance review of the company and presents it before the head of the organization at predefined intervals.
Election of the Head
In case the top head of the company resigns or his tenure comes to an end, the board finds a suitable replacement by electing a new head.
The delegates have to determine everything associated with the proper functioning of a company. The following points shall cover their duties in detail:
Attending monthly board meetings or seminars to determine the policies of the company. Decision-making is one of the major attributes of the panel.
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.
Right to disclose all conflicts regarding business dealings.
Implements employee retention policies to retain good employees in the company.
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.