The role of the board is to run the business by providing active and consistent supervision in crucial areas like strategy and risk. It is not, however, able to control the operations of the company by intervening in management’s duties. These responsibilities are meant to help executives and the CEO bring value to shareholders.

To perform their tasks effectively, boards must have an established governance structure and framework. This includes a clear definition of roles that range from chairpersons to directors as individuals, as well being able to establish a procedure for determining priorities and making decisions.

Additionally, a sound board governance system requires a well-planned procedure for arranging meetings and agenda items. It also incorporates a strong governance system that clearly defines the purpose of the board, its purpose, relationship with management, and the authority it has. The framework includes a statement of the board’s governing standards and values, such as integrity and transparency.

The board should also have an established strategy for identifying the CEO, developing the person’s profile and overseeing the succession. It should have a plan to handle urgent issues and be able to change its focus if needed. The board’s governance practices must be aligned with the business, and the board must be prepared to anticipate and react to the changes that are taking place in today’s fast-paced and highly complex environment. This is why board members must be able to make a strict commitment of time and energy to their duties on the board.

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