Boards of directors are accountable for a range of responsibilities, ranging from financial oversight to determining how to best manage the resources of an organization. This is a position of high rank that requires dedication and commitment from anyone who is willing in unpaid meetings and read through budget documents, and accept the legal responsibility for a business. For these reasons, it is crucial that those who are interested in joining a board of directors are aware of what their boards of directors responsibilities job duties actually are before committing to the position.
There are special boards as well as the governing board, that focus on certain areas, like fundraising, marketing, or branding and community connections. They are typically composed of an assortment of directors from outside and inside who bring their diverse perspectives and expertise to the table.
The most important aspect for any board member is to make sure that they comply with their legal obligations, which are usually broken down into three broad categories:
Duty of Care
A board director’s legal responsibilities in this area revolve around making decisions based on the best interests of the business and ensuring that their choices comply with all applicable laws and reporting requirements. This includes educating them on the legal documents of the organization and also the bylaws of the board.
A board of directors should also actively promote their work and strive to develop positive public relations for their company. This should be a natural obligation to the most passionate and dedicated board members, but it can be a struggle for other members who may not be as active in promoting the organization’s work.