A board of directors is a governing body composed of individuals who are the custodians of shareholders’ interests and safeguard the long-term success of an business. A strong board, comprised of people who have a wide range of expertise and skills, is essential for any business.

Traditionally, boards have supervised management teams, while also approuving strategies suggested by executives of companies. Nowadays a well-designed board of directors can provide leadership on key issues such board of directors as corporate strategy and vision, risk and opportunity management as well as innovation, talent, sustainability, and succession of leadership.

A company’s board is typically comprised of both outside and inside members. An outside director is someone who is not employed by an organization. To be considered an independent director, one must not have any significant ties to the company.

When assembling your board, make sure you choose individuals who are committed and have experience in your field. It is also important to have a mix of individuals with varying skill sets who are able to provide innovative problem-solving as well as innovative and strategic thinking. You should also seek out those with specializations in areas such as finance, marketing and capital raising.

It’s important to realize that as an official on the board you are a fiduciary and are legally accountable for the company’s highest-level decisions. If you are a shareholder, then you also have the right to vote on board members during the proxy voting season. If you are considering voting for a board member, make sure to go through their proxy documents carefully and make sure they are truly independent.