A board member’s fiduciary responsibility is to act in the best interests of their company and shareholders. Having a fiduciary duty is an important responsibility. Damages could be awarded to beneficiaries if a fiduciary fails to fulfil their duty, and this is called a breach of fiduciary duty.
Many executive committees are small, with three to seven members. These could consist of the chairperson, vice-chair, secretary, and treasurer, including the CEO and any other board officers who wish to join.
What does corporate governance mean? A much-used definition comes from the Cadbury Report, and it defines corporate governance as “the system by which organisations are directed and controlled”. In essence, it is the “management of an organisation’s management”.
Collective responsibility refers to a situation where individual members of a group are held responsible for the group’s actions as a whole. Once a position has been agreed and voted on then, members must abide by that position.
One of the primary duties of the nominations committee is to seek out potential candidates to fill board positions and non-executive director roles. The committee is trusted to review candidates’ qualifications to ensure they match the organisation’s requirements.