Board of Directors Overview

The board of directors are one of the most important aspects of any company. They ultimately decide the direction the company will take, including helping to manage acquisitions, corporate strategy and establishment of various committees. Read on for more information about the structure, responsibilities, and the election process of corporate Board of Directors.

Structure of the Board of Directors

A board of directors requires a minimum of three members and usually a maximum of fifteen. The average board has roughly 11 members, with the majority elected directors. the board is the brain of any company, keeping work flowing efficiently and ensuring that tasks are delegated to the management. The Board also works closely with various committees ethical practice or to help the company achieve environmental goals.

The board of directors is also often responsible for setting and following a corporate strategy. A board that is functioning well is one that operates with the long-term goals of the company in mind. Setting and following a strategy, therefore, needs to remain unaffected by changes in Board personnel.

However, board members need to be elected by shareholders. Regardless of the company, the board act on behalf of the shareholders, ensuring that the company is profitable for the shareholders in the long run.

Responsibilities of the Board

Aside from managing which candidates may run for election, the board is responsible for many tasks in any company. These often include upholding the integrity of the corporation’s finances, creating and leading various committees to help achieve company goals. What these goals are also decided upon by the board in cooperation with shareholders and a supervisory board (where present). 

The board can be best described as the body that both creates and implements the corporate strategy. They are in essence, the brain that keeps the company profitable and innovative. A stagnant board of directors can have a disastrous impact on the long-term prospects of a company. Thus emphasizing the importance of well conducted, and fair elections.

Online voting is by far the easiest election procedure to set up. AGM voting is secure, fast and fun. It also avoids unnecessary re-counts and the highly inaccurate “show of hands” practice.

The Board of Directors election process

The way in which candidates are selected varies between corporations. The specific way in which candidates should be selected will be laid out in your company bylaws. Most organizations create a nominations committee whose job it is to select the right candidates for each upcoming election. Find out how our nomination platform can help you plan your next election

There are campaigns within a board of directors election. They are often quite competitive as the board may be split into different factions supporting different corporate strategies. Elections are, therefore, incredibly important and should be well understood meticulously planned and expertly conducted.

Shareholders may submit candidates, but to do so they must follow specific guidelines and announce them at the AGM. This process is often lengthy and expensive so it not that common.

Learn how fully managed online elections for your next board of directors election can save you time, money and effort.