The role of a board in corporate governance is to ensure that an organisation operates legally and in the best interests of shareholders and other stakeholders. This is why the board be independent of management and concentrate on issues of importance instead of the day-to-day business.

The board oversees the company’s operations and strategies and policies, setting the policy, managing risks and taking other decisions which are reserved to it. It also decides on and oversees the performance of the CEO as well as the succession planning process for the CEO and also establishes the company’s mission and culture.

It also promotes shareholder interests, ensures that financial information is accurately reported, and makes sure that investors receive all the information that could impact their investments. It also takes steps to safeguard the integrity and reputation of a business and prevent fraud. It should encourage directors to be trained regularly in particular about the latest technology, important issues such as environmental governance, social, and governance (ESG) or global crises that impact the way in which businesses are run.

A well-organized committee structure, including secretary and chair plays a vital role in ensuring effective governance. It is important to promote a culture of collaboration and open communication among the committee members. The secretary of the committee will help in setting the agenda, keep minutes of meetings and distribute them to all members of the committee.

A committee must have the confidence to rely on its advisers’ advice, reports, and opinions. It is essential that the committee is aware of who these advisors are and evaluates their expertise.

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