12.4. Strategy - Board of directors

A strategic backbone

The way you run board meetings speaks volumes about how you run the company. Successful companies use board meetings to create and improve key business strategies.

Mediocre companies often fail even to set objectives for their board meetings.

This briefing is aimed primarily at companies large enough to have board meetings. But it is also useful for smaller businesses, as many of the points apply to strategy meetings in general.

The briefing outlines:

• The objectives of board meetings.
• Who should be on the board.
• Preparing for board meetings.
• Running and following up board meetings.

Duties and powers

Company directors are responsible for the management of their companies. But they act on behalf of the owners, and must consider their interests in everything they do. They also have responsibilities to the company's employees, its trading partners, and the state.

As a director, you need wide powers to help the company become a strong and profitable business. You face serious penalties if you abuse those powers, or if you use them irresponsibly.

This briefing covers:

• Appointing company directors.
• Directors' powers.
• Directors' responsibilities.
• Penalties for misuse of position.
• How to protect yourself.

A legal requirement

Every company is obliged to appoint a company secretary. If you accept this appointment, you will become an officer of the company, with legal responsibilities under the Companies Act.

It is in everyone's interest to ensure that you are the right person for the job, and that you get adequate support in doing it.

This briefing looks at your role, and covers:

• What qualifications you need, and who can appoint you.
• What your duties are, and when they have to be exercised.
• How to make the most of your role.
• What can go wrong, and what the consequences will be.