Yesterday I published a guest blog article with GRAPE where I address the role of a board of directors/board of managers in a business. You can see that article here
I met with a client very recently that illustrated another important, and related, point:
It is important to have good people serving on a board of directors who understand their roles.
A board of directors is there to cast vision, make policy decisions, oversee the company, and its chief executives. The board should also leave the operations of the company in the trust of those who it has named, whether it is the President/CEO or Manager.
A big problem occurs when the Board instills its own judgment into the decision making process of issues left under the authority/responsibility of the CEO.
Does your board, whether for-profit or not-for-profit, have the tools to understand their proper roles?
If not, you may be opening your company up to instances where legal duties/roles are breached.
Questions? Comments?
Email me: Jeshua@dwlawpc.com
Purpose Driven General Counsel 