Boards of directors responsibilities range from financial oversight to determining the best way to handle the resources of the organization. It is a position of high responsibility that requires commitment and dedication. In these circumstances, it is imperative that anyone who are considering joining a board of directors are aware of the actual duties of their position are prior to committing to the position.

There are special boards, in addition to the governing board, which specialize in specific areas, such as fundraising, marketing, or brand awareness and community connection. They are typically composed of members from directors from outside and inside who bring their different perspectives and expertise to the table.

The most important aspect for any board member is to ensure that they fulfill their legal obligations, which are usually broken down into three broad categories:

Duty of Care

In this regard the legal obligations are to make decisions in the best interest of the company. They must also ensure that their choices comply with all applicable laws and reporting requirements. This includes making them familiar with the legal documents of the business and also the bylaws of the board.

A board of directors must also be actively promoting their work and work to establish positive public relations for their company. This obligation should be natural to the most enthusiastic and committed board members but it is something that M&A transaction can be a challenge for others who may not be as involved in promoting the organization’s work.