A board has a fundamental corporate governance role to ensure that a company is legal and operates in the best interests of shareholders and other stakeholders. This is why the board function independently of management, and focus on major issues instead of the day-to-day business.

The board is responsible for the company’s strategies and operations in setting policy, directing risk, and making other decisions that are its responsibility. It also decides on and oversees the performance of the CEO, as well as the CEO succession planning process, and it establishes the company’s values and culture.

It also supports the interests of shareholders, ensures financial data is properly reported and ensures that investors receive all the information that could affect their holdings. It also takes steps to protect the integrity and reputation of a company and stop fraud. It should encourage directors to be trained regularly, especially about emerging technologies and key issues like environmental governance, social, and governance (ESG) or global crises that affect the way that businesses are managed.

A well-structured committee structure, which includes secretary and chair is essential in the effective management. It’s important to create a culture of open communication and collaboration among all members best virtual technologies for corporations of the committee. The secretary of the committee can help determine the agenda, as well as take minutes of meetings and distribute them to all members of the committee.

A committee must be able to trust the reports, advice and opinions of its advisors. It is vital that the committee is aware of who these advisors are and assesses their credentials.