A board’s role in corporate governance involves overseeing and advising the corporation to ensure it operates legally, fairly, and in its shareholders and stakeholders’ best interests. The boards do this by remaining independent of the day-to-day operations and management of the company. The board makes sure that the company’s strategic plans comply with its legal, financial and ethical obligations. It also identifies the most significant risks facing the business and the procedures for managing these risks, while delegating a portion of these tasks.

A majority of boards have a chair who is responsible for facilitating meetings, maintaining an appropriate atmosphere and setting the agenda. Other duties of the chair include encouraging discussion and debate, and ensuring that important issues are given adequate attention. Board secretaries also have a crucial role to play, scheduling regular board meetings and creating agendas.

Boards are also increasingly involved in issues such as sustainability, mergers and acquisitions, development of talent and culture, and strategies and risk management. They are also expected to have a a strong focus on the ESG (environmental, social and governance) aspects that are becoming crucial to consumers and investors alike.

The effectiveness of a board is determined by its structure and the members’ mix of knowledge, abilities and skills. It is essential that members of the board have a thorough knowledge of the industry and the sectors in which their companies operate. This is essential for their ability to work with and challenge management and bring the strategy of the company to keep pace with changing IT service automation for operational excellence investor and consumer expectations.