Boards are unique leadership structures that possess significant power and a responsibility for those outside the organization and those within it. They operate within a flexible framework that is only restricted by state-by-state guidelines, and the collective will to change their own composition and structure.

While boards have many responsibilities but they should concentrate on oversight and management policy decisions, leaving operational matters to the executive team, including the CEO. That means establishing an oversight system and establishing policies to guide their actions and the actions of managers. It also involves focusing on regulatory and legal issues, compensation, conflicts of interest as well as community benefit and CEO evaluation.

A solid governance system will be essential for the operation of a board. It should include an explicit description of the roles and responsibilities of each committee member and director. Directors should be able to access and use the board portal. This allows directors to efficiently prepare for meetings and also allows board discussions to remain focused on the main issues at hand. It also improves communication among members and the smoother transition of board members rotate.

A sound governance system includes the appointment over here about Shaping Business Requirements with VDRs of a lead or presidency director, an independent board member who is accountable for the efficient conduct of a meeting and establishing the agenda. In addition to that, it should include schedule of executive sessions in accordance with requirements for stock exchanges and a provision for time for directors to sit down with the CEO in the absence of management.