3.1.2 Roles and Responsibilities
Roles and Responsibilities
The Board of Directors has several key responsibilities, which include:
Strategic Direction: The board sets the overall strategic direction of the company, including long-term goals, mission, and vision. This involves approving major business strategies, capital investments, and mergers or acquisitions.
Oversight of Management: The board oversees the company's management team, ensuring that it executes the approved strategies effectively. This includes hiring and evaluating the CEO and other senior executives, setting their compensation, and, if necessary, removing them.
Risk Management: The board is responsible for identifying and managing the company's risks. This involves setting risk management policies and ensuring that adequate internal controls are in place.
Financial Oversight: The board oversees the financial performance of the company, including approving budgets, financial statements, and dividend policies. It ensures the accuracy and transparency of financial reporting.
Compliance and Ethics: The board ensures that the company complies with all relevant laws and regulations. It also sets the tone for corporate ethics and integrity, including approving codes of conduct and ethical guidelines.
Stakeholder Engagement: The board is responsible for engaging with key stakeholders, including shareholders, employees, customers, and the community. This involves ensuring that stakeholder interests are considered in decision-making processes.