As a businessowner, it’s important to know the different roles that board members hold and to understand the duties that come with each position. While roles and responsibilities will vary from business to business, there are commonalities that apply to most all boards. Here are the basics.
Also known as the board chair, the president’s primary role is to lead and guide other board members and ensure the board is on track to achieve its goals and objectives. Some of the key responsibilities of the president include developing and appointing committee chairs and hiring and supervising the chief executive officer for the business.
Board Vice President
Also known as the vice chair, the board’s vice president stands ready to assume the role of president if needed. Vice presidents are often assigned to special projects as directed by the president. They may also take on special projects assigned by the board chair.
The board treasurer is responsible for managing the business’ budget and records of receipts and disbursements. While it isn’t a requirement for the board treasurer to be an accountant, most members in this position are or at least have a background in accounting, finance, or bookkeeping. Responsibilities include monitoring and directing finances and preparing budgets.
Responsible for a number of administrative duties, the board secretary ensures that all board meetings are run as efficiently as possible. Duties include sending meeting notices and taking and distributing the minutes of a board meeting.
Board Committee Chair
Businesses often have special initiatives for which a committee is assigned to carry out (e.g., development, fundraising). It is the duty of the committee chair to lead the project and select and direct committee members.
As members of the board, directors assume different responsibilities based on the needs and types of businesses they serve. Directors are often appointed to committees based on their experience, expertise, and interests.
If you’re a businessowner, you can better protect individuals serving on your company’s board with a directors and officers liability insurance policy. This type of insurance coverage can protect your executive members and business, as well as help you attract and retain quality board members.
If you have a business in need of D&O insurance, contact the experts at Oakwood D&O. We have over 15 years of experience specializing in all aspects of management liability, with an ardent focus on D&O insurance.
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