Board members and stakeholders must be able to comprehend the company’s objectives and strategies as well as risks. They also must understand their roles and responsibilities to ensure that the business is legally run and in the best interests of employees, shareholders and all other stakeholders.

It is critical to have a well-defined board structure that is comprised of people with expertise in governance and leadership and knowledge of your industry. The structure may be a mix of executive (also called “inside directors”) and non-executive (also called independent directors) positions. It is crucial that the board has a competent chair who can manage meetings efficiently, promote a culture of feedback, trust, and invest in training.

A board can also have officers who are elected or appointed to specific posts, such as president and vice-president. In addition, it’s normal for boards to have special committees focusing on specific activities like auditing and compensation.

Getting on a board requires a big commitment of time and effort. However, it’s a great opportunity to gain valuable experience in a group setting and to learn to think differently. You’ll also receive a pay check and maybe some other interesting benefits, such as the company jet or products.

You will gain an unique perspective as the board member which is different from the manager position you currently hold. You’ll gain a new perspective on how a company functions. It can also assist you in becoming a more effective senior manager, as you’ll learn how to report to the board.