The Board Corporate Governance Role

Corporate governance of the board is the job of a board of directors in advising and supervising a business to ensure that it operates legally, fairly and in the interest of its shareholders and stakeholders. The boards accomplish this by being separate from the management and day-today operations of the business. The board ensures that the strategy plans of the company are aligned with its legal obligations, financial obligations, and ethical obligations. It also decides on the main risks facing the company and the procedures for managing the risks, while delegating some of these tasks to committees.

Most boards have a chair who is responsible for facilitating meetings, maintaining a good dynamic and setting the agenda. The chair’s other responsibilities are to encourage discussions and debates and to make sure that important matters receive appropriate attention. Board secretaries also play a crucial role in planning board meetings and making the agenda.

In addition boards are getting more involved in a range of topics, including data management: key to M&A success strategy and risk management, sustainability, potential mergers and acquisitions as well as the development of talent and culture. They are also expected have an increased focus on ESG (environmental social and governance) issues that are becoming important for both consumers and investors alike.

The effectiveness of a board is determined by its structure and its members with their mix of knowledge, abilities and skills. It is essential that members of the board have a thorough knowledge of the industries and the sectors in which their businesses operate. This is important for their ability to support and challenge management and bring the strategy of the company to keep pace with changing investor and consumer expectations.