A board has a fundamental responsibility for corporate governance, which is to ensure that an organization is legally run and in the best interest of shareholders and other stakeholders. This role requires that the board function independently of management, and focus on issues of importance instead of routine business.

The board oversees the company’s operations and strategies in setting policy, directing risk and taking other decisions that are its responsibility. It also decides on and oversees the performance of the CEO as well as the CEO succession planning process, and it establishes the company’s mission and culture.

It also promotes the interest of shareholders, ensures financial data is correctly reported and makes certain that investors are informed of all information that could affect their holdings. It also takes steps to protect the integrity and reputation of a business and to prevent fraud. Directors should be urged to be informed regularly, especially about emerging technologies and other important issues, such as environmental governance, social, and governance (ESG), or IT service automation for operational excellence global crises which affect the way businesses are managed.

A well-structured committee structure, including secretary and chair is essential in effective governance. It is crucial to establish an environment of collaboration and open communication among all members of the committee. The committee secretary will set the agenda, keep minutes of meetings, and distribute them to the members of the committee.

A committee should be able to trust the reports, advice, and opinions of its advisers. It’s important for the committee to be aware who these advisors are and to evaluate their qualifications.