What is BOD? Role and responsibilities of the Board of Directors

The position of Board of Directors (BOD) plays an extremely important role in the business operations and development of the company. BOD is considered as the "compass" of the enterprise, the people who help the organization survive and develop in the market. So what is BOD? What are the roles and qualities to become a BOD? Please refer to the article below!

1. What is BOD?

BOD is the abbreviation of Board of Directors, a group of senior leaders responsible for running a company and is known as the Board of Directors of the organization. BOD acts as a management body and must hold regular meetings to set management policies and supervise the company's business operations.

The position of BOD is a mandatory requirement in every enterprise, as they are the main representatives of the listed shareholders of the organization. Private enterprises or non-profit organizations will establish an appropriate Board of Directors depending on the needs and size of the company.
 

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2. The role of BOD in the company

The role of BOD is to establish and maintain cooperative relationships with other partners. At the same time, they must develop and maintain relationships with leaders. When taking on the role of Chairman or Board of Directors, BOD must make a detailed monthly work plan and distribute work for effective implementation and supervision.

Furthermore, the Board of Directors contributes to strengthening and developing the human resources in the company. BOD must ensure the rights and interests of shareholders and investors. In addition, they are also responsible for recruiting highly qualified personnel and continuing training to develop human resources for the business.

3. What are the responsibilities of the Board of Directors?

3.1 Planning and operating the organization

As the “locomotive”, BOD members have an important responsibility in planning and orienting the activities of the enterprise.

After determining the direction and specific goals, BOD members need to implement the plan into detailed, specific and clear plans. These plans will be communicated to the subordinate departments and divisions for implementation. However, during the implementation process, the Board of Directors must also continuously monitor, track and operate this entire process.

3.2 Protecting assets and supervising finances

Finance is one of the important factors that determine the existence of the company and requires the participation of the Board of Directors. Ensuring that the business has sufficient assets as a solid foundation to support employees and departments to work more effectively, with adequate facilities, human resources, equipment, etc.

At the same time, regular financial monitoring also helps the Board of Directors understand the revenue and expenditure situation, financial capacity to be able to continue implementing the next plans and solutions in a timely and effective manner.

3.3 Selecting personnel, evaluating and training members for BOD

Selecting BOD members suitable for the business's strategy and goals is a complex and challenging process, requiring careful assessment of candidates based on professional standards, experience, ethics and adaptability.

In addition, the policy of training and training Board of Directors members also plays an important role in helping them have the opportunity to learn and improve their knowledge, skills and attitudes in accordance with the corporate culture.
 

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3.4 Exercising the power of trust

The Board of Directors' responsibilities in exercising the power of trust include the task of deciding on strategy, supervising business operations, managing finances, deciding on investments and purchasing assets for the company.

The BOD must ensure that the decisions they make are carefully considered and focused on the interests of the company and its shareholders. Furthermore, the BOD must also comply with legal regulations, ethical standards and internal regulations of the company.

4. What qualities are needed to become a BOD?

4.1 Leadership ability

As the leaders of a business, the board of directors, possessing excellent leadership ability is very important. Leadership ability will play an important role in operating, supervising and assigning tasks and work to each department and division to ensure connectivity and increase operational efficiency. Leadership thinking also helps BOD to orient the business in the right direction, develop quickly and achieve goals optimally.

4.2 Have a long-term vision

BOD positions need to have a more comprehensive vision of both the present and the future. Especially, in the context of an increasingly competitive market between businesses, a long-term vision will bring a lot of development potential. In addition, businesses also need BOD members who are able to detect and prepare for long-term development strategies, to ensure sustainable development for the future.

4.3 Know how to utilize talent

can contribute to the effective development of the business by utilizing and developing talent in the organization. Nowadays, the human factor plays an important role in a business. When the board of directors is able to recognize the strengths and weaknesses of each employee and create conditions for them to develop their capabilities, and at the same time assign work appropriately, this will contribute positively to the success of the organization.

4.4 Understanding legal issues

Understanding legal regulations will help the BOD ensure that the business's operations comply with legal rules and regulations, including mastering tax regulations, labor regulations, and related legal documents.

The article on Faro Vietnam has helped you understand more about what BOD is, the authority and responsibility of BOD in the enterprise. This is useful knowledge for you when you start working at any company. If you dream of becoming a member of BOD, determine a career path for yourself right now.

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