The Corporate Governance Role

The Boards are responsible for establishing the corporate strategy, directing management and making sure that the interests of shareholders and their stakeholders are taken care of. They also have the responsibility of resolving conflicts between the shareholders and management in the event of disputes over compensation or disagreements on the direction of the company.

Boards are often required to support and guide the management team by providing them with resources and guidelines for things like approuving marketing campaigns or allocating more resources. They also play a role in determining the company’s risk tolerance and implementing a strong risk management plan. They also have to ensure that internal controls are functioning effectively.

The board also has to ensure that all legal requirements are fulfilled, and that the company is in good standing with regulators. This can be an exhausting task which must be performed in conjunction with other committees, such as audit and compliance.

Finaly, boards should help the company develop a strong culture by setting a good example for all employees. This is particularly important in the current context where corporate behaviour is being scrutinized more than ever.

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