Board Chair Responsibilities

In the management hierarchy of some legal entities, there is a collective body for the operational management of their activities – the board. Nevertheless, it is headed by the sole head – the board’s chairman.

In the intervals between meetings of the meeting of founders (shareholders), the board of directors, or the board, he is solely responsible for: the achievement of the goals and objectives of the enterprise, the implementation of the chosen development strategy, the financial results of the company.

Differences from similar controls

The management of an enterprise or organization is carried out by a multi-stage chain, each link of which has its functions defined by regulatory documents. In general, the structure looks like this (although sometimes some links may be missing):

Shareholders or founders. It may be singular. The highest level of management implements its functions at annual or unscheduled meetings, in between which it delegates them to subordinate structures.

Board of Directors or Supervisory Board. Similar bodies whose task is to set strategic goals and control their implementation.

Next come the sole executive power representatives: the chairman of the board, the president of the company, and the general director. Legislation endows them with similar functions, so the actual content of their sphere of responsibility largely depends on the structure and charter of the organization.

They are subject to the collective executive body: board or directorate. The only difference is whether he is elected or appointed.

Powers and duties of the Chairman

To successfully perform the function of the sole manager, the chairman of the board is endowed with extensive powers:

  • He leads the board, that is, prepares meetings, develops the plan, decides on the date and place of the meeting, and manages the board meeting.
  • Represents the organization entrusted to him in cooperation with partners, government agencies, and fiscal institutions.
  • Has the right to sign without a power of attorney on all financial and other documents.
  • Can enter into contracts on behalf of the organization.
  • Conducts the personnel policy of the enterprise and hires and fires employees.
  • Carries out general management of the organization in the intervals between board meetings.

In addition, the chairman is responsible for:

  • In their actions, be guided by the interests of the company and its founders.
  • Do not use your position for personal interests and the interests of third parties.
  • In its activities, the provisions of the charter and the requirements of the law.

Here you can download the job description of the chairman of the bank’s board.

How is elected

A candidate for the position of Chairman of the Board must have specific qualification requirements:

  • Have an appropriate education.
  • Experience in this industry.
  • Experience in leadership positions.

The chairman is elected from registered candidates at the general or board meeting, depending on the requirements of the organization’s charter. For the elections to occur, the panel must have a quorum established by regulatory documents. A simple majority of votes (more than 50%) will ensure that the candidate takes office. For this:

The decision of the meeting is drawn up in a protocol indicating the number of those present and the distribution of votes. On the basis of the protocol, an order is issued on the assumption of office of a new chairman.

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