Guides
10 things to remember on becoming a board member
Becoming a board member is an opportunity to showcase your strategic value at the very highest level. Here are the ten essential things you should know about how a board of directors operates – and how you should approach your job, especially in the first few board meetings.
1: Understand your role and responsibilities
The board of directors is responsible for providing strategic direction and oversight for the company and for ensuring that the company complies with all relevant laws and regulations. As a board member, you must attend board meetings, review financial reports, and ask questions about the company’s performance. You may also be asked to serve on committees or to participate in special projects.
2: Be independent and objective
Board members are expected to be independent and objective in their decision-making. It would help if you did not let your personal or professional interests influence your judgment. It would be best if you challenged management when necessary.
3: Have a strong understanding of the company’s business
You must have a strong knowledge of the company’s business to be an effective board member. This includes understanding the company’s products or services, target market, competitive landscape, and financial performance.
4: Be a good communicator
Board members must communicate effectively with each other, management, and shareholders. This includes articulating your thoughts and ideas clearly and listening to and understanding the perspectives of others.
5: Be a team player
The board of directors is a team, and board members need to be able to work together effectively. This means being willing to compromise, share ideas, and support the board’s decisions.
6: Be committed to the company’s success
Board members should be committed to the company’s success. This means putting in the time and effort necessary to help the company achieve its goals.
7: Be aware of your duties and legal obligations
Board members have several legal obligations, including the duty of care, the duty of loyalty, and the duty of good faith – which is known as your fiduciary duty. It is essential to be aware of these obligations and act according to them.
8: Be prepared to learn and grow
Board members should be committed to the company’s success. This means putting in the time and effort necessary to help the company achieve its goals. Board member and director training is essential before you step into the boardroom. “You need to take lessons and pass a test to drive a car. The same should apply to taking on the challenges of a board member,” says David W Duffy, CEO of the Corporate Governance Institute.
9: Be ethical and responsible
Board members should be committed to the company’s success. This means putting in the time and effort necessary to help the company achieve its goals.
10: Have fun and learn
Being a board member can be a challenging but rewarding time. It is essential to have fun, learn from and enjoy the experience.
