A board plays a crucial function of corporate governance that is to ensure that a company operates lawfully and in the best interests of shareholders and other stakeholders. This is why the board be independent of management and concentrate on major issues instead of daily business.

The board is responsible for the company’s operations and strategies by establishing policy, directing risks and taking other decisions reserved to it. It also selects and oversees the performance of the CEO, as well as the succession planning process for the CEO and sets the company’s mission and culture.

It also promotes shareholder interests It also ensures that financial information is correctly reported, and makes sure that investors get all the information that may affect their investments. It also takes measures to protect the integrity and reputation of a company and prevent fraud. It should encourage ongoing training among directors, especially on new technologies, crucial issues like environmental governance, social and (ESG), and global crises that impact how a business is conducted.

A well-structured committee structure, with secretary and chair is essential in ensuring effective governance. It is important to promote the culture of collaboration as well as open communication among the committee members. The secretary of the committee will help in setting the agenda, take minutes of meetings and distribute them to all members of the committee.

A committee should have the confidence to rely on the advice of its advisors and their reports, advice, and opinions. It is crucial that the committee understands the role of these advisors and assesses their qualifications.

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