The Board’s Corporate Governance Role

The role of a board in corporate governance is to ensure that a company is operating legally and in the best interest of shareholders and other stakeholders. This is a role that requires independence of management and focusing on the company’s major concerns rather than its it impacts on financial transactions day-today operations.

The board oversees the company’s operations and strategies and policies, setting the policy, managing risk, and making other decisions reserved for it. The board also chooses, oversees and plans the succession of the CEO as well as the performance of the CEO. It also sets the company’s mission and culture.

It also promotes shareholder interest, ensures that financial information is accurately reported, and ensures that investors are provided with all the information that could impact their holdings. It also takes steps to safeguard the integrity and reputation of the business and prevent fraud. It should promote ongoing education among directors, particularly on the latest technologies, important issues such as environmental Governance, Social and Governance (ESG), and global crises that impact the way businesses are run.

A well-structured structure for the committee, including chairs and secretary is crucial to ensuring effective governance. It is essential to create the culture of collaboration as well as open communication between the committee members. The secretary of the committee will assist set the agenda, take minutes of meetings and distribute them to all members of the committee.

A committee must be able to trust the advice, reports and opinions of its advisors. It is crucial for the committee to know who these advisors are and to assess their qualifications.