Capacity for Decisions
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To be a Board Member
A corporation is a legal business "entity" and considered just like a "individual" person in the business circle. There are profit and non-profit corporations and dependant upon which country there can be various types of corporations.
In Canada, behind most major services, Police, Children Services, Banks, etc. One will find a Board of Directors. They draft up the policies of operations, guidelines and by-laws which in turn follow business, employment and criminal laws. After all, to continue as a legal business they don't want to break any laws or they would lose financial support and ruinous reputation.
A benefit of being a Board Director is that one can not get sued personally if there is liability insurance.The corporation protects the owner(s) from personal liability. This is called the "Corporate veil". It doesn't always work but is considered a major benefit when compared to being a non-corporation.
One can usually find notice of a public "Annual General meeting" of such and such corporation. If interested one can attend this meeting and may even have the opportunity to find out if applications for Directors are being called.
Once sitting on a Board, you should be, supplied with a Corporate manual of which contains their corporate papers, by-laws, mission, and operating procedures for the Board of Directors and core operations of the business. A good board member will follow this manual conservatively to avoid legal trouble.
Board of Directors can get paid a monthly "Honorarium" if the corporation is well maintained and have well established funding source(s). Dependant upon the corporation, one can get a large or no honorarium whatsoever.
A board will have Executive members, President, Vice-president and Treasurer/Secretary which also have duties to apply when in a board meeting with the directors. These should be outlined in the corporate manual.
A committee of the board can be formed with board members to address specific issues such as Personnel and Finance. They would address the issues and provide recommendations at their next board meeting of directors.
Under the Carver model, a board hierarchy can be as follows;
Community --> Services <-- Staff
Staff ---> Executive Director/Manager
Executive Director/Manager --> Board
Board --> Funding Organizations, Government, Community
Personnel committees can be made as a alternative body to report complaints for staff also if uncomfortable with their manager.
Corporations are also contenders for white/blue collar crimes. Embezzlement and misappropriation of funds can easily be practiced at the Board level. Corruption, greed and addictions can easily destroy a corporation. Strict control of monies and honesty must be adhered to for successful operations.
Not all corporations are the same and each operates with their own system but being a board member can be a satisfying and learning experience for man or woman. One can even start their own corporation with the above mentioned guidelines.
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Article(C)2009 Dame Scribe, all rights reserved. Dame Scribe creates articles and posts online. She creates articles on business skills & development, health, science, technology and society and has a strong passion for writing.
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- Home - Boardmember.com
- Overview of Roles and Responsibilities of Corporate Board of Directors
- HR Magazine: Educating the Board
- The Corporate Board magazine, The Journal of Corporate Governance
THE CORPORATE BOARD magazine meets the unique corporate governance and director information needs of corporate board members and senior officers - Corporation Forms - Legal Forms Database - Free Downloads
Corporation forms, database of corporation legal forms free to download and print.
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