Once your business is incorporated and becomes a limited company, you’ll need to have a ‘board of directors’ in place to provide your core leadership and run the business.
But why do you need a company board? And what are the different roles and functions that each member of the board supplies?
Leading the business from the top
Your board of directors exists to manage the future success of the business. Whether it’s hiring talent for your senior management team, defining your key business strategy or making decisions on acquisitions, your board must have the best interests of the company at heart.
The boards key aims will be to:
- Maintain a stable financial position
- Deliver a steady pipeline of customers and revenue
- Provide a return for your shareholders
- Define a strategic direction that drives your future success.
Your board will meet regularly to review performance, discuss new opportunities (and threats) and make key decisions about your future path.
Key positions on the board:
Chief Executive Officer (CEO) – the CEO is the highest-ranking executive in the company and will generally be the public face of the business. They manage all the key elements of the business and drive the important executive and strategic decisions.
Chair of the Board (COB) – The Chair runs board meetings, ensures the board is meeting its duties and provides leadership to the other directors on the board. The Chair is a vital role and had real authority over both the board and senior management.
Chief Operations Officer (COO) – the COO oversees all operational and procedural elements of the company and will work closely with your CEO when it comes to defining the future operational elements of the business.
Chief Finance Officer (CFO) – the CFO is responsible for the financial elements within your business strategy. Their aim will be to generate revenues, reduce costs, maintain positive cashflow and – ultimately – drive the best possible profits and returns.
Chief Marketing Officer (CMO) – the CMO is in charge of all marketing and promotion of the business. They will create your marketing strategy and will ensure all promotional activity is aligned with the broader company business strategy.
Chief Technology Officer (CTO) – the CTO heads up the IT and technology aspects of the business. This will mean keeping systems up to date, maintaining the right security requirements and ensuring the company’s systems are promoting efficient operations.
Non-Executive Directors (NEDs) – Some boards will also include NEDs. These directors are not part of the executive team and don’t make operational decisions. They are there to provide experience and advise on policy and planning.
Talk to us about setting up your company board
If you’re looking to get incorporated, we can help you set up your company board. We’ll help you refine which executive roles are needed, who does what and how to set up the relevant company documents to formalise your board structure.
Get in touch to get your board in shape