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The Role of The Board of Directors |
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The
Board of Directors perform the following functions:
Select & appoint or remove a CEO
Provides CEO advice and counsel
Select & remove other Board Members
Provides financial expertise
Contacts to external community
Enhance firm reputation and credibility
Provides technological expertise
Develop management succession plans
Reviews management proposals
Assess its own performance
Serve as a Court of Appeal in personnel matters
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How
Many Board Members (Directors) Can You Have |
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State laws also determine the minimum and maximum number
of individuals you can have on the Board of Directors.
Depending on the State this number could range from 1 to
as many as you want. Most States leave it up to the
Corporation to stipulate the requirements of the Board
of Directors in their Bylaws. If you are the sole owner
of your organization, then you are the only Director,
unless you decide to add other members to the Board.
When you add members to the Board you must report this
with the respective State.
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What
Are The Skill and Experience That Should Be Required for
Board Members |
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Board Members are selected to bring certain expertise to
the oversight process of the Board. For example you may
select someone with Information Technology background to
provide oversight on Information Technology matters;
someone with Finance & Accounting background to provide
finance and accounting oversight; someone with Legal
background to provide legal oversight; etc.
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Age
Requirement for Board Members: |
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State laws require that the minimum age for Board
Members be 18.
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Type of Board Members
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There are two
types of Board Members:
Internal:
An Internal Board Member (Director) is someone who has
ownership in the organization and also serves as a Director.
External (or Independent):
An External or Independent Board Member (Director) is
someone who does not have ownership in the organization but is selected to serve on the
Board. Public corporations have been required by law to have External or Independent Board Members as a
means to provide additional checks and balances to the process.
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Board Meetings |
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The Board of
Directors are required to meet (by State Law) at least
once, every year.
Learn how to
conduct Board Meetings.
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