How to Build a Diverse Board of Directors

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A board of directors is a group that supervises and assists the company, assisting it succeed as efficiently as is possible. They are not a part of the company management, and focus on making high-level decisions which affect stakeholders and shareholders. They also ensure the company’s security during times of crises. The structure of the board differs depending on the company’s bylaws as well as its articles of incorporation. It is typically comprised of non-management employees that are elected for a specified time. Some companies prefer to have their terms expire and start at different times so that they don’t end up having too many vacancies all at once.

It is important to choose members of the board with a variety of skills and backgrounds. The best boards consist of an array of people who have different backgrounds, ethnicities and educational levels as well as experiences. This will provide a broader perspective to the table, which can help to identify and overcome obstacles.

When you’re building your board, you should look for people with specialized experience which can drive business growth. A board member who is knowledgeable in capital raising can assist your business to grow and profit from opportunities in the market. Someone with expertise in marketing on the other hand can offer insights on how to promote your brand and increase sales. A board member with a wealth of legal or financial knowledge can guide your company through complex situations. In addition to their responsibilities as legal fiduciaries, a good board of directors is also accountable in determining the company’s direction and ensuring that the general manager and CEO follow through with the plan.

due diligence process