The board develops the mission, policies, and overall direction for an organization. The seven points below outline the major responsibilities of the board of directors. The role of the board of directors has increasingly come under scrutiny in light of corporate scandals such as those at Enron, WorldCom, and HealthSouth, in which the directors … The Important Work of Boards of Directors, speech by Commissioner Luis A. Aguilar, at the 12th Annual Boardroom Summit and Peer Exchange, in New York, NY, on October 14, 2015 Organizing the first board of directors for your nonprofit may be the most important thing you do. Many states have laws governing the functions of the board of directors of nonprofits and the conduct of board members. Mukul Gulati is the Co-founder and Managing Partner of Zephyr Peacock India. The importance of the board of directors. In a broad sense, a corporate board of directors acts as a fiduciary for shareholders. The board is also tasked with a number of other responsibilities, including the following: Creating dividend Dividend A dividend is a share of profits and retained earnings that a company pays out to its shareholders. The right mix of people and skills is the key. Organizing the first board of directors for your nonprofit may be the most important thing you do. By connecting board members to the fundraising process – “giving and getting,” they will have a deeper understanding of the importance and impact of their own gift. From the bottom to the top, every role within a corporation comes with distinct definitions, responsibilities and duties. Serving as a director is important work that needs good people, and I respect those of you who have stepped up to the plate. Recruiting, supervising, retaining, evaluating and compensating the CEO or general manager are probably the most important functions of the board of directors. A ‘personal board of directors’ can help you navigate challenges in your career. With these thoughts in mind, today [October 14, 2015] I want to focus on three themes of corporate governance that merit special attention: Functions of a Board of Directors. In a study with a broad span of board directors from Fortune 250 companies, they learned several insightful things about the importance of board diversity that go beyond the bulleted list above. By Alaina G. Levine Mar. Lessons from Lehman's failure. For instance, a nonprofit board must oversee the nonprofit organization's operations and make sure that its staff and volunteers act legally and ethically. Experienced directors and a well-functioning Board of Directors can help family run businesses improve in these areas. Russell Reynolds & Associates sought to discover how directors view diversity and how directorships open up to a diverse group of candidates. 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