The job of a board member in corporate governance is to ensure that the organization is legally run and in the best interest of shareholders and other stakeholders. This role requires that the board be independent of management, and focus on important issues rather than routine business.
The board oversees the company's operations and strategies in setting policy, directing risk and making other choices which are reserved to it. It also chooses and supervises the performance of the CEO as well as the succession planning process for the CEO and also establishes the company's mission and culture.
It also promotes shareholder interests and ensures that financial information is properly reported, and ensures that investors receive all information that may affect their investments. It also takes steps to safeguard the integrity of a company and to prevent fraud and other deceit. Directors should be urged to be trained on a regular basis particularly on the latest technologies, important issues such as environmental governance, social, and governance (ESG) or global issues that affect the way that businesses are managed.
A well-formed structure of the committee, which includes an executive secretary and chair is essential to effective governance. It is essential to create the culture of collaboration as well as open communication between all members of the committee. The committee secretary will set 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 crucial for the committee to be aware the role of these advisors and to assess their qualifications.