HOW SHOULD BOARD OF DIRECTORS BE STRUCTURED

The structure of a board is generally determined by the bylaws of the organization. Such bylaws define how many members there are, how the directors are elected, and how frequently the board meets. There is no required number of members for an organizational board and may depend on the company and its industry.

As an overall rule, the larger the number of outside board members, the better. This makes the board more independent and allows it to provide a higher level of corporate governance to shareholders, particularly if the position of chair of the board is separated from the CEO.

A balanced Board will typically comprise a dynamic mix of personalities from a wide range of backgrounds, with varying interests and frames of reference, and different viewpoints and approaches to problem solving.

Re-evaluating your board structure and responsibilities. You have to revisit your board of directors structure as years go by and perhaps change responsibilities of some individuals. It is best to look at progress of hinderance.