boardable features and comparison
A board of directors is accountable for the management of a business whether it’s a privately or public company, business trust, coop, or family-owned entity. Members of the board may be appointed by shareholders or elected (bylaws, articles of incorporation). They are compensated either by salary or stock options. Fiduciary duties or shareholder violations could cause them to be removed from their positions, including selling board seats to external interests and attempting to manipulate votes to benefit their companies.
Effective boards balance stakeholders’ concerns and management’s vision, and typically include representation from inside and outside the company. These members are usually chosen due to their industry knowledge and experience, making sure that they have the right capabilities to effectively manage the company. They must be able and assess risks, devise strategies to reduce them and oversee management’s performance.
When deciding on new members for your board of directors, think about their commitment to time and any other responsibilities that they may have outside of work. It’s also essential to understand their availability and if they have conflicts of interest. Meeting minutes that are well-documented will ensure that board members are aware of their roles and responsibilities. This will also ensure accountability for any decision made. It’s also important to build an initial pool of candidates in the process, and also to spread the word about board positions. This lets you find competent candidates before the term is over, avoiding delay in strategy.