{"id":1217,"date":"2020-04-03T18:32:51","date_gmt":"2020-04-03T18:32:51","guid":{"rendered":"https:\/\/www.b2bcfo.com\/jim-schuck\/board-of-director-expertise\/"},"modified":"2021-11-19T21:37:12","modified_gmt":"2021-11-19T21:37:12","slug":"board-of-director-expertise","status":"publish","type":"page","link":"https:\/\/www.b2bcfo.com\/jim-schuck\/board-of-director-expertise\/","title":{"rendered":"Board of Director Expertise"},"content":{"rendered":"\r\n

Board of Director Expertise<\/h2>\r\n

Certain companies require a formal Board of Directors as constituted in the company\u2019s bylaws, operating agreements, etc. Both the number and the terms of the directors are usually documented in the company\u2019s legal agreements.<\/p>\r\n

Election of Directors and Officers<\/h3>\r\n

Directors are elected by the shareholders\/owners of the company. The Board of Directors is responsible to elect the officers of the company, which usually include the Chief Executive Officer, President, Secretary, etc.<\/p>\r\n

\"Board-of-Directors\"<\/p>\r\n

Fiduciary Duties of the Directors<\/h3>\r\n

The members of the Board of Directors have \u201cfiduciary duties\u201d in the capacities.<\/p>\r\n

\u201cA\u00a0fiduciary’s\u00a0responsibilities or duties are both ethical and legal. When a party knowingly accepts the\u00a0fiduciary duty<\/a>\u00a0on behalf of another party, they are required to act in the best interest of the (company). This is what is known as a \u2018prudent person standard of care,\u2019 a standard that originally\u00a0stems from an 1830\u00a0court ruling.<\/p>\r\n

This formulation of the\u00a0prudent-person rule<\/a>\u00a0required that a person acting as fiduciary was required to act first and foremost with the needs of beneficiaries in mind. Strict care must be taken to ensure that no\u00a0conflict of interest<\/a>\u00a0arises between the fiduciary and their principal.\u201d (Investopedia.com)<\/p>\r\n

D&O Insurance<\/h3>\r\n

Members of the Board of Directors require a company to have D&O (Directors & Officers) insurance to protect them from personal losses if they are sued while performing their fiduciary duties. They are to receive an annual Certificate of Liability Insurance as a Certificate Holder. The required insurance coverage may range from $5MM to $20MM, dependent upon the risk and needs of the members of the board.<\/p>\r\n

Director Duties<\/h3>\r\n

The duties of a member of the Board of Directors may vary but may possibly include some of the following:<\/p>\r\n

    \r\n
  1. All legally mandated fiduciary duties to represent the interest of all the shareholders, as a group, in managing the affairs of the company, including the duty of care and duty of loyalty expected and required of such a position.<\/li>\r\n
  2. Election of the officers of the company.<\/li>\r\n
  3. Reviewing business plans.<\/li>\r\n
  4. Making investment and spending decisions, selecting management, and delegating day-to-day operational duties to said management while retaining ultimate control and responsibility for the overall management of the company.<\/li>\r\n
  5. Advise company officers regarding their duties.<\/li>\r\n
  6. Review industry reports and company plans; comment upon written materials circulated for comment; review marketing plans, technologies, and products.<\/li>\r\n
  7. Suggest fruitful courses of action and make appropriate introductions to potential employees or business opportunities, all on a timely basis.<\/li>\r\n<\/ol>\r\n

    MY<\/h2>\r\n

    Expertise<\/h2>\r\nBoard of Director Expertise<\/i><\/a>Business KPIs for Employees<\/i><\/a>Improve Business Processes<\/i><\/a>\r\n

    Please see my \u201cAbout\u201d page to read my qualifications to be an expert on this subject.<\/p>\r\n

    Get Started With <\/h2>\r\n

    Get Your own complimentary* Discovery Analysis\u2122 from B2B CFO\u00ae<\/sup><\/p>\r\n