We can only define the responsibilities of a board member when we know the type of board on which the director serves. For legal purposes, nonprofit organizations are corporations, just like their for-profit company counterparts. For governance purposes, nonprofit boards…
Entity management and cybersecurity have long been viewed as having separate and distinct roles in relation to risk management. As the global economic climate progresses, the two roles are increasingly finding ways to complement each other to intensify risk-management strategies.…
Laws and regulations set the standards for corporations to have boards of directors. Chartered or registered boards fall into the category of corporations, even though they don’t make or distribute profits to their members or stakeholders. What makes things a…
There’s no question that the economic crisis of 2008 helped to reshape transparency within for-profit and nonprofit organizations. Organizational leaders in transparency go beyond the legal definition of accountability, transparency and consultancy. Today’s organizations have more good reasons than ever…
The economic crisis of 2008 was a historical event that changed the conversations and inner workings of boardrooms across the country. While it was a terrible time for the nation, boards of directors learned many lessons from that time regarding…
You might not have an effective board if…your board approves every item on the agenda at every meeting with little or no discussion. Board work gets off to a good start when everyone around the board table agrees that their…
In recent decades, retirees, dignitaries and the good ol’ boys were staples of the composition of the board of directors. That trend is quickly becoming a thing of the past. There’s an old saying that states, “Where more responsibility is…
A board chair wears many hats, but two words that encapsulate the board chair roles and responsibilities are facilitate and leadership. Nearly every word spoken and every action taken by the board chair falls under these two fundamental roles. For…
Directors and officers insurance (D&O) has an interesting history. In the late 19th century, Lloyd’s of London, a conglomerate of insurance syndicates, developed the current model of D&O liability. But for many years, D&O maintained its popularity primarily within the United States. Around the 1980s, however, the benefits of D&O insurance spread across the ocean…
The now-former board chair of a mid-sized nonprofit organization resigned hastily in frustration. Having identified some management irregularities, he was riding roughshod on the chief executive, who countered with complaints of debilitating micromanagement. Until the chair’s departure, however, the rest of the board remained unaware of any problems. The chair believed it his responsibility to…
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