The Corporate Governance Role

The Boards are responsible for establishing the company’s direction, overseeing management and making sure that the best interests of shareholders and other stakeholders are protected. They also have the responsibility of resolving conflicts between management as well as shareholders, whether they be disagreements over compensation or disagreements over the direction of the business.

In addition to the numerous tasks boards must complete they are frequently required to provide direction and support to the management team by providing them with guidelines and resources, like approving new marketing campaigns or allocating additional resources. They also assist in determining the company’s appetite for risk and aid in the development of a robust risk-management programme. They also have to ensure that internal controls are operating effectively.

The board should also ensure that all legal requirements are met and that the company is in good standing with regulators. This is usually an time-consuming task that should be done in conjunction with data-driven IT strategy formulation other committees such as audit and compliance.

The board is also expected to help the company develop a healthy and solid culture by setting an example of positive behavior to all employees. This is especially important in the current climate, where the behavior of corporate employees is scrutinized more than ever.