Board Management Principles | Grupo EKonomiKa

Boards are unique leadership structures that have enormous power. They are accountable to those within and outside the organization. They operate within a spherical framework that is governed by state-by-state guidelines, and the collective will to alter their own composition and structure.

While boards have a lot of responsibilities however, they should focus on governance and oversight decisions, while delegating operational issues to the CEO and executive team. This involves establishing guidelines and a governance framework that will guide their actions and the management’s. It also involves paying attention to regulatory Data Security and legal issues such as compensation, conflicts of interests and community benefit as well as the evaluation of CEOs.

A sound governance system is essential to the work of a board, and it should include clear documentation of the roles and the responsibilities of each director as well as committee. All directors should be able to access and use the board portal. This allows directors to plan meetings efficiently and keeps discussions of the board focused on the primary concerns of the meeting. It also improves communication between members, and a smoother transitions when board member rotations occur.

A good governance system includes the appointment of an independent director who is accountable for the smooth running of meetings and establishing the agenda. It should also include scheduling executive sessions in accordance with requirements of the stock exchange and the time when directors are able to meet in private with the CEO when management is not present.