A Board of Management is the governing entity of a company, however the term is often  being used for government, universities and not-for-profit organisations.  Local governments and university boards have traditionally called themselves Councils, whereas the Commonwealth and State Governments call their boards Parliaments, and not-for-profit organisations call them Committees.  Independent on its name, the terms Board, Board of Directors, or Board of Management are being the norm. This governing entity has four key functions:   ensuring legislative compliance of the organisation, establishing a governance framework to guide appropriate behaviour, setting the strategic direction of the organisation, and the selection, appointment and ongoing performance management of the chief executive officer. A Board Director (Councillor or Committee Member) may either be an executive Director, which means they also have a role in the organisation, or a non-executive Director, which means they only reside on the Board.  This explains the term Chief Executive Director, as they are the most senior of the people that have a role in the organisation. A Board Director cannot represent another organisation, rather they must act independently and in the best interests of the organisation and its members / shareholders. This means that if a person was nominated to be on a Board of Management, such as the case of a parent entity placing a person on a subsidiary business’ board, they are actually referred to as a Nominee Director and not a Representative Director. In fact, if a Board Director is being unduly guided by an external company or individual, in the event that personal liability arises, they too may be held liable and would be referred to as a Shadow Director. A Shadow Director is not a good position, it suggests they are controlling or significantly influencing a Board Director like a puppeteer pulls the strings … Continue reading Getting on to Boards of Management