A board is a key function of corporate governance that is to ensure that the company operates lawfully and in the best interest of shareholders and other stakeholders. This role requires independent functioning of management IT service automation for operational excellence and focussing on the company’s key issues rather than the day-today operations.
The board is accountable for the management of risk, the operation and strategy of a company, and other decisions that are entrusted to it. It also decides on and oversees the performance of the CEO as well as the CEO succession planning process and establishes the company’s values and culture.
It also protects the interests of shareholders, ensures financial data is accurately reported and ensures that investors receive all information that could affect their holdings. It also takes steps to safeguard the integrity and reputation of the business and avoid fraud. It should promote ongoing education of directors, specifically on new technologies, crucial issues such as environmental governance, social and governance (ESG), and global crises that affect how a business is conducted.
A well-constructed committee structure, including the secretary and chair is essential in ensuring effective governance. It is important to establish an atmosphere of open communication and collaboration between all members of the committee. The secretary of the committee will establish the agenda, record minutes of meetings, and distribute them to the members of the committee.
A committee should be able to rely on its advisers’ advice, reports, and opinions. It is vital that the committee is aware of who these advisors are and evaluates their qualifications.