Frequently Asked Questions
What is a Board of Directors?
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors. It may also be called "the executive board" and is often simply referred to as "the board". A board's activities are determined by the powers, duties, and responsibilities delegated to it or conferred on it by an authority outside itself. These matters are typically detailed in the organization's bylaws. —read more at Wikipedia the free encyclopedia
Do I require experience to become a board member on a Corporate Board?
You do not necessarily require experience on a board, however depending on the Board in question, there are varying criteria that must be met. To gain further insights regarding this topic, see the article by Dorie Clark: How to Become a Corporate Board Member — "In the past, joining a corporate board conjured visions of networking at posh resorts with politicians and celebrities. “People used to look at board membership as a cushy way of making a lot of money,” says Elaine Eisenman, Dean of Executive Education at Babson College and a founding member of Women Corporate Directors. Up until the millennium, she says, “what was important for very large, high visibility boards was having star names on them – celebrities, political people, anybody who would give a halo effect to say how important your company was.” But those days are over.
What is a Chairman (or Chairwoman)?
The chairman or chairwoman, or simply the chair, sometimes known as chairperson, is the highest officer of an organized group such as a board, a committee, or a deliberative assembly. The person holding the office is typically elected or appointed by the members of the group. The chair presides over meetings of the assembled group and conducts its business in an orderly fashion. When the group is not in session, the officer's duties often include acting as its head, its representative to the outside world and its spokesperson. In some organizations, this position is also called president (or other title), in others, where a board appoints a president (or other title), the two different terms are used for distinctly different positions. —read more at Wikipedia the free encyclopedia
What is an Advisory Board?
An advisory board is a body that provides non-binding strategic advice to the management of a corporation, organization, or foundation. The informal nature of an advisory board gives greater flexibility in structure and management compared to the Board of Directors. Unlike the Board of Directors, the advisory board does not have authority to vote on corporate matters or bear legal fiduciary responsibilities. Many new or small businesses choose to have advisory boards in order to benefit from the knowledge of others, without the expense or formality of the Board of Directors. —read more at Wikipedia the free encyclopedia
What is a Non-Executive Director?
A non-executive director (abbreviated to non-exec, NED or NXD) or external director is a member of the board of directors of a company or organization who does not form part of the executive management team. They are not employees of the company or affiliated with it in any other way and are differentiated from inside directors, who are members of the board who also serve or previously served as executive managers of the company (most often as corporate officers). However they do have the same legal duties, responsibilities and potential liabilities as their executive counterparts. Non-executive directors are directors who act in advisory capacity only. —read more at Wikipedia the free encyclopedia