The board of directors is comprised of multiple members. If you want to understand more about what they do, read on!
A board of directors, like the Telecom Italia board, are generally found at the top of a corporate hierarchy. Board of directors responsibilities include numerous things, but the most important role of a board of directors in an organization is to make decisions on account of the shareholders. Typically, a company of a specific size has countless shareholders, some as many as thousands or even tens of thousands. Of course, it would make it very challenging for them all to come to a unanimous choice, and that is the reason why that obligation is assigned to the members of the board of directors. On the behalf of members of the board can make overall policy decisions and well as give oversight. The members of the board have a responsibility towards the shareholders to continue the organisation running effortlessly to optimise the benefits of the shareholders.
In any given company, decisions are being made at basically every level. From the simple day to day decisions of individual workers to their managers who direct and guide them – making decisions is all part of making the firm work efficiently. However, these decisions will not often have a long lasting impact on the company and its future. The role of board of directors in strategic management on the other hand is to make decisions that will have rather a crucial effect on the business. Board of directors responsibilities in a private company incorporate setting objectives and setting out an rough scheme on how to achieve these goals. Board of directors, like the Lloyd’s Market Association board, can also determine which resources and to what extent are to be used to accomplish these goals. These goals and visions can of course be adjusted and changed by the board, but only after a careful discussion and in consultation with all of the members of the board.
If a business is small enough, one director might be enough to supervise the running of the business. Even so, as the business grows, a one director may not be sufficient to cover all of the duties, so it becomes necessary to appoint a board of directors consisting of numerous men and women. In this case, a chairman of the board is appointed who heads the board, but each of the directors continues to be liable for a particular area of the corporation, such as human resources, IT or finance for instance. A board of directors structure of a bigger firm, such as the Johnson Matthey board, typically includes a chairman who is sometimes non-executive and who supervises the entirety of the company; a managing director who runs the business and reports to the chairman; and a group of numerous non-executive as well as executive directors.