The Corporate Governance Role

Boards are responsible for setting the company’s strategy, overseeing management and ensuring that the best interests of shareholders and other stakeholders are met. They also have the responsibility of resolving conflicts between shareholders and management regardless of whether there are disputes about compensation or disagreements regarding the direction of the company.

Boards are often asked to assist and guide the management team, by providing them with resources and guidelines including accepting marketing campaigns and allocating more resources. They also have to be involved in determining the company’s risk-taking capacity and supporting a robust risk management plan. They must also make sure that internal controls are working effectively.

Another area that requires board oversight is ensuring that all legal requirements are fulfilled and that the company is in good standing with regulators. This is often an extremely time-consuming job which must be performed in conjunction with other committees, such as audit and compliance.

The board is also required to assist the company establish a strong and healthy culture by setting an inspiring example to all employees. This is especially important in the current climate, where the conduct of companies is scrutinized more than ever before.

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