How to Form a Board of Directors for your Business
As your business grows you may be faced with the decision of forming a Board of Directors. The sole purpose of a Board of Directors is to have the daily operations of the corporation handled by the officers who are appointed by the board of directors. You will want to consult with your lawyer at Robinson, Seiler & Anderson in Provo to learn more about the best way to go about forming a board of directors. Below are some of the aspects you need to take into consideration when you begin the process of forming your board of directors.
You will want to appoint and recruit directors that want your business to grow and be successful as much as you do. Make sure they are in it for the long run and will do anything they can to help the business succeed over the years.
Create Specific Job Descriptions
When forming the Board of Directors for your business you need to have a solid structure from the beginning. To do this it is always a good idea to create specific job descriptions for each of your directors. Make sure you define the role the board will play in strategy, risk management, etc.
Don’t Play Favorites
Insist that all directors recognize their duty to the company as a whole (or all of the shareholders) rather than play a limited role of safeguarding the interests of one shareholder.
The best way to have a successful Board is by including people from various backgrounds and experiences. Having a well-rounded group will help you in tackling any situation that may come their way.
Remember that the CEO reports to the board; be ready for a challenge and embrace the collective wisdom and enhanced discipline. Be clear about the differing roles of the chairman and CEO — and don’t try to combine them in one person.