Boards are unique leadership structures with substantial power. They have a duty to all who are inside and outside the organization. They operate within a spherical structure that is only limited by state-by-state regulations, and the collective will to change their own composition and structure.

While boards have many duties however, they should focus on governance and oversight decisions while delegating operational matters to the executive team and the CEO. That means establishing the framework for governance and creating policies that guide their actions and those of managers. It also requires considering legal issues like compensation, conflict of interest, community benefits, and the evaluation of CEOs.

A well-designed governance system is vital to the activities of a board. It should contain explicit documentation of the roles and responsibilities for each committee and director. It must also be easily accessible to all directors via an online portal for the board. This will allow directors to prepare efficiently for meetings and keeps board discussions focussed on the central concerns of the meeting. It also improves communication between members and a smoother transition when board member rotations occur.

A good governance system should include the appointment of an independent director who is accountable for the smooth running of meetings and sets the agenda. Additionally it should also include the scheduling of executive meetings in accordance with requirements for stock exchanges and a time-out for directors to meet individually with the CEO in the absence of management.

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