A board of directors is responsible for the management of a company and ensuring its long-term success. This primarily involves setting the vision, mission, values and strategy of the company and delivering value to its key stakeholders. In order for boards to run effectively, there needs to be the right mix of individual capability, effective leadership and organisation, and robust measures of financial and non-financial performance which are consistently evaluated and reported on.
This factsheet provides an overview of the various types of directors and their specific duties, including managing directors, non-executive directors, shadow directors and de facto directors. It also analyses the factors that can impact on the effectiveness of the board and highlights important considerations for evaluating and reporting on board performance, including human capital reporting and financial reporting.