WHAT IS A COMPANY CHAIRMAN AND WHAT RESPONSIBILITIES?
What is a company chairman or chairman of the board or board chairman? Michael Tait explains:
A company chairman is also known as a chairman of the board or board chairman. It is the highest ranking officer in the corporate governance structure of a company. The chairman is typically elected by the board of directors.
The chairman holds a leadership position in guiding and overseeing the company’s activities.
The specific responsibilities of a company chairman can vary. This depending on the company’s bylaws, its size, and the industry it operates in. However, there are some common responsibilities associated with the role of a company chairman:
Leadership and guidance: The chairman provides leadership and sets the strategic direction for the company. They work closely with the CEO (Chief Executive Officer) and other executives and provide guidance and support in achieving the company’s goals.
Board management: The chairman oversees the functioning of the board of directors. They schedule and preside over board meetings, ensuring that the board operates effectively and efficiently. The chairman also ensures that the board members are well-informed, engaged, and fulfil their fiduciary duties.
Board composition and governance: The chairman plays a key role in board composition. This includes the appointment and removal of directors. They will be involved in identifying and recruiting qualified individuals to serve on the board. The chairman also promotes good governance practices. They monitor board performance, and ensure compliance with applicable laws and regulations.
Shareholder relations: The chairman often represents the company to its shareholders. They act as a liaison between the board and shareholders. They engage with institutional investors, attend shareholder meetings, and address concerns or questions raised by shareholders.
Stakeholder management: The chairman will interact with key stakeholders such as employees, customers, suppliers, and community representatives. They contribute to building positive relationships with stakeholders and may participate in important negotiations or discussions.
Risk oversight: The chairman oversees the company’s risk management practices. They ensure that appropriate systems and processes are in place to identify, assess, and mitigate risks. They work with the board and management to establish effective risk management strategies.
External relations and representation: The chairman represents the company to external parties, such as regulators, government authorities, industry associations, and the media. They may participate in industry conferences, public events, and other forums where the company’s interests are represented.
It is important to note that the specific responsibilities of a company chairman can vary. This depends on factors such as the company’s structure, the presence of non-executive directors, and the presence of separate executive roles like CEO or president. Additionally, the chairman’s role can also be influenced by national corporate governance regulations and practices.
