Board corporate governance is the responsibility of the board in advising and overseeing a company to ensure that it operates legally and in the fair interest of its shareholders and stakeholders. Boards perform this function by operating independent of management and day-to-day operations. The board makes sure that the company’s plans for strategic planning comply with its legal, financial and ethical obligations. It also identifies the biggest threats to the company and the best ways nonprofit board organization to manage these risks, delegating the responsibility for some of these tasks to committees.

Many boards have a chair who is accountable for facilitating meetings, maintaining an excellent atmosphere and setting the agenda. Other duties of the chair include encouraging discussion and debate, and ensuring that important issues receive appropriate attention. Board secretaries are also crucial in scheduling board meetings as well as preparing the agenda.

In addition boards are getting more involved in a variety of issues, including risk and strategy management, sustainability, potential mergers and acquisitions and development of culture and talent. They are also expected to put an emphasis on ESG (environmental social and governance) issues that are becoming essential for consumers and investors alike.

To be efficient, a board needs to have the right structure and have members with different abilities, knowledge and experience. It is essential that members of the board have a deep understanding of the industries and sectors in which their companies operate. This is crucial in their ability to confront and help management, while bringing the company’s policies in line with the changing needs of investors and consumer expectations.