What is the role of a Chairperson?
The chairman of the board is the leader of the board of directors of a company. They are responsible for overseeing the board's activities and ensuring that it fulfills its fiduciary duties to the company's shareholders.
The chairman typically has the following responsibilities:
Preside over board meetings: The chairman is responsible for presiding over board meetings and ensuring that they are conducted in an orderly and efficient manner. They also ensure that all board members have the opportunity to participate in discussions and that all decisions are made in the best interests of the company.
Set the agenda for board meetings: The chairman is responsible for setting the agenda for board meetings and ensuring that all relevant topics are discussed. They also work with the CEO and other board members to ensure that the agenda is balanced and that all viewpoints are represented.
Communicate with shareholders: The chairman is responsible for communicating with shareholders about the board's activities and decisions. They also work to ensure that shareholders have a voice in the company's governance.
Oversee the board's committees: The chairman is responsible for overseeing the board's committees and ensuring that they are working effectively. They also work with the committee chairs to ensure that the committees are meeting their objectives.
Recruit and nominate new board members: The chairman is responsible for recruiting and nominating new board members. They work with the CEO and other board members to identify qualified candidates and to ensure that the board has the right mix of skills and experience.
Evaluate the board's performance: The chairman is responsible for evaluating the board's performance and making recommendations for improvement. They work with the board to identify areas where the board can be more effective and to develop a plan for improvement.
The chairman's role is to act as a bridge between the board and the CEO. They are responsible for ensuring that the board is informed of the company's operations and that the CEO is aware of the board's expectations. The chairman also plays a key role in resolving conflicts between the board and the CEO.
In some companies, the chairman is also the CEO of the company. In these cases, the chairman has the dual responsibility of leading the board and leading the company. This can be a difficult balancing act, but it can also be an effective way to ensure that the board and the CEO are working together towards the same goals.
Ultimately, the chairman is responsible for ensuring that the board of directors is effective and that it is fulfilling its fiduciary duties to the company's shareholders. The chairman plays a critical role in the governance of a company and their responsibilities are essential to the success of the company.