Dear Potential,
New or Sitting Member of the Board of Directors,
You
have the duty to
prudently
represent the interests of the shareholders. You have to
understand the needs and desires of employees, customers and
regulators. You have to do your best to understand the risks in your
organization, and to
exercise oversight.
Year after year, you have to do more, and you have more
responsibilities.
There is a simple
problem: You
will make mistakes.
Although it is impossible to avoid making wrong decisions, you
can avoid the
negative consequences,
like
liability, litigation damages and expenses. Yes, perhaps you are
covered by a comprehensive liability insurance policy.
It is good to
remember that you face risks greater than insurance coverage
alone can address.
You must fulfil two essential duties
while performing your corporate functions:
1. Duty of diligence:
You
must act
in good faith
and do what a
reasonably
prudent person
in a comparable position would do under similar circumstances.
Before
making decisions, you must consider
all material information
reasonably available
to
you.
You must learn, and you must be able to provide evidence that you had
the necessary knowledge to make informed decisions.
2. Duty of loyalty:
You must not misuse your position of trust for your private interests.
To make a long story short:
You must make informed business decisions in good faith
Every
company must insist on a
thorough
orientation for new directors
and an
ongoing education
program.
You must be careful: Directors should be
well informed
about the company’s regulatory environment, compliance challenges and
obligations.
As
the legal and regulatory environment is constantly changing, the need
for education is continual.
Our Mission: To help you make informed business decisions in good
faith
Membership in the
International
Association of Potential, New and Sitting Members of the Board of
Directors (IAMBD)
means that you always try to learn more and to make informed
decisions. Our International Association provides
networking, training, certification, alerts and updates you can
use.
Membership is Free
15+ of the best headhunters of the world are not only aware of our
Association, but also add the members in their database regularly, so
you may have new opportunities.
Best Regards,
George
Lekatis
President of the
International
Association of Potential, New and Sitting Members of the Board of
Directors (IAMBD)
General Manager and Chief Compliance Consultant, Compliance LLC
1200 G Street NW Suite 800, Washington DC 20005, USA
Tel: (202) 449-9750
Email:
lekatis@members-of-the-board-association.com
Web:
www.members-of-the-board-association.com
HQ: 1220 N. Market Street Suite 804, Wilmington DE 19801, USA
Tel: +1 (302) 342-8828
Join the
Association
Membership is Free
