A board of directors is a group of people who are legally responsible for the supervision of the organization they serve.
The Board’s role differs from the roles of senior management and staff of an organization. Here’s how:
Role of the Board
The Board’s main role is to approve policies and budgets that will best serve the organization from an ethical, financial and legal standpoint.
To act according to the constitution and bylaws set out in the organization’s articles of incorporation, and in accordance with its established budget and policies, a Housing Board of Directors:
- provides financial oversight and monitoring
- makes sure management/staff are following official policies
- meets on a regular basis, typically once a month
- organizes and appoints committees to make recommendations to them on complex issues
- works collaboratively with key management/staff members
- conducts periodic evaluations of the organization’s operations, with a view to improving them
- hears and responds to complaints and appeals from residents
Note: The terms “board member” and “director” are used interchangeably.
Management/staff has two main roles:
- Works with the Board in drafting budgets and policies
- Operates the Corporation on a day-to-day basis in accordance with the established budget and policies.
In short, the Board governs the organization; management/staff operates it.