Effective Boards of Directors: An Overview

Today′s boards of directors are facing increasing changes regarding their accountability for the actions of their companies, and what are seen by society to be their functions. Examples of different types of board structure and methods of their composition are examined. The advantages and disadvantages of each are discussed. It is concluded that the organisation of the board depends on its goals and objectives; each will require a different format. However, the use of committees, particularly the audit, board audit and nominating committee styles, is considered to increase the effectiveness of boards of directors.