What is BOD? Meanings of BOD

Rusq.org explains what BOD means

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What is BOD? Meanings of BOD - Website Rusq
What is BOD? Meanings of BOD – Website Rusq

What is the definition of BOD?

  • BOD stands for the phrase Board of Directors, also means “Board of Directors” ie the heads of an enterprise elected by the shareholders in that business. The BOD will represent shareholders in various business roles. Therefore, the main task of the Board of Directors is to establish policy for an enterprise as well as to supervise the entire management of that enterprise.
  • In a large company, the BOD team is divided into several positions, each with its own job responsibilities. In small and medium-sized companies, one person can take on many different roles.

Who does the BOD include?

Because it is elected to represent and manage the interests of its shareholders, the Board of Directors can be any member of the company, either domestic or foreign.

The board of directors usually consists of a chairman and two groups of directors: an internal director and an external director.

  • External director: Will be the complete opposite of internal director. These positions are selected based on their professional experience and reputation in the profession.
  • Chairman: can be a separate person or both the Chairman cum Internal Director/Director of External Relations.
  • Internal Director: this is the department that always receives a lot of attention from shareholders and employees in the company. Experience is what creates value for internal directors, however. These people are at high risk of being dismissed if they are involved in a case of abuse of power, which negatively affects the company.

There are quite a few director positions in a business. However, depending on the size of the operation, these director positions can be full or short. But a business that is considered a certain size must have all the following director positions:

  • Creative director
  • Director of Information Technology
  • Investment and Development Director
  • Product Manager
  • Managing director
  • Brand Director
  • Business manager
  • Marketing Communications Director

Functions and duties of the board of directors

The Board of Directors will have to well undertake the 6 tasks below to ensure the sustainable development of the business, and to increase their reputation and self-worth.

  • Supervision and control of the business: is responsible for ensuring that the audit is carried out in a timely manner every year. Supervising the work of the auditors in the most accurate way.
  • Establish a corporate governance system: create a framework for the company to ensure the operational benefits for all employees.
  • Governance, organization and maintaining a good relationship with the CEO: BOD needs to maintain meetings and contacts 3-4 times a year or preferably once a month.
  • Strategic orientation and common goals for the business: creating a common vision, mission and development goals for the business. The CEO and General Manager will often combine to accomplish this.
  • Trust: represent and protect the interests of shareholders and investors in the company.
  • Recruiting, monitoring, evaluating and fostering the company’s key management: is to find human resources for key positions of the company and have a policy of retaining talent to serve the company’s work. .

The importance of the board of directors

  • It can be said that the Board of Directors is the center of all activities at the enterprise. They ensure management practices as well as the best interests of shareholders. Therefore, for any position in the BOD, it needs at least 2 factors: good business management skills and really understanding of all legal issues.
  • BOD is the brain center of every business, all development steps and operational goals of an enterprise originate from the Board of Directors, so they are an important factor determining the success or failure of a business. Karma.

Conclude

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