What is a Chairman of the Board?

business economy

A chairman of the board is simply a person who leads a group of decision makers. Most of the time, this group is known as the board of directors, especially in the corporate world. However, these groups can also be known as a council, commission, committee or perhaps a number of other designations. They can be found in corporations, not-for-profit agencies and governmental entities.

The chairman of the board is seen as a key figure in corporations, often being responsible for driving the long-range vision of the company. Many times, the board chairman is also one of the most visible spokespersons for the company, conducting interviews and providing expert analysis not only relating to his company, but also the general industry his company operates within. Many times, the board chairman is referred to as the chairperson, a more politically correct term, as it includes both men and women.

Duties and responsibilities of a chairman of the board vary from situation to situation and from company to company. A chairman of a non-profit foundation may have different duties than a chairman of a Fortune 500 company. A chairman of the board may not be a full-time employee of the company or agency, but often is, especially if it is a large organization.

In addition to the previous duties mentioned, a chairman of the board also provides a number of other essential functions. Those include running meetings, coordinating subcommittees, aiding board development, providing financial and legal oversight, assessing performance and perhaps also holding a certain level of administrative duties.

In most cases, these duties are designated to other subordinates who, in turn, report back to the chairman of the board, or board of directors as a whole. Often times, the chairman works with what is known as an executive board, made up of department heads within the company or organization who provide comprehensive reports on a routine basis.

The chairman of the board then takes these departmental reports and has them coordinated into a comprehensive document assessing the condition of the company at that particular moment in time. Once this is done, the final product is then presented to the board. The chairman of the board then may offer a list of recommendations in order that future goals can be met. The chairman may also ask board members for their own recommendations.

Once discussion begins to take place, the chairman of the board will conduct the discussion, usually utilizing Robert’s Rules of Order. At some point, after the issue has been thoroughly explored, the chairman may ask for a vote. In some cases, depending on the board rules, the chairman of the board is not allowed to vote, except perhaps in the case of a tie. In other cases, the board chair does have a regular vote.

Related wiseGEEK articles

Category

wiseGEEK features

Subscribe to wiseGEEK


FREE: Subscribe to wiseGEEK

 
    learn more

our strict privacy policy ensures that your email address will be safe



Written by Ken Black


copyright © 2003 - 2009
conjecture corporation