How to Build a Diverse Board of Directors

A board of directors is a body which oversees and provides advice to the company, assisting it perform as effectively as possible. They are separate from company management and the day-to-day activities, focusing on top-level decisions that affect stakeholders and shareholders. They also safeguard the company in times of crises. The board’s structure varies in accordance with the company’s articles of incorporation and bylaws. It is typically comprised of non-management members elected for a specified period of time however, some companies choose to have terms that expire and begin at different times to keep from having too many empty seats at one time.

When it comes down to selecting board members, it is essential to find those who have a mix of experience and qualifications. The most effective boards are diverse, and include people from diverse genders, ethnicities, backgrounds, and experiences. This can provide a broader perspective to the board, which will help find solutions and overcome the obstacles.

When building your board, you should seek out candidates with specialized experience who can contribute to business growth. A board member with expertise in capital raising can help your business scale up and benefit from market opportunities. Someone with experience in marketing on the other hand can offer insights on how to position your brand and increase sales. This is the same for an executive with an extensive knowledge of the law or financial expertise, which can help guide your company in challenging circumstances. In addition to their responsibilities as legal fiduciaries good board of directors is also responsible for establishing the company’s strategic plan and overseeing that the CEO and general manager are following the strategy.

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