The Tasks of the Board of Directors

In an increasingly complex and fast-paced business environment, the role of the board of directors has never been more critical to the sustained success, resilience, and integrity of an organisation. Boards are responsible not only for guiding long-term strategic direction but also for ensuring that the organisation operates to the highest standards of governance, accountability, and stakeholder engagement.

The Institute of Directors (IoD) has identified a set of core tasks that are essential for any board to fulfil its responsibilities effectively. These encompass both a performance dimension focused on setting the vision, strategy, and structure for long-term value creation and a conformance dimension ensuring sound oversight, delegation, and accountability in day-to-day operations.

Together, these responsibilities ensure that boards play a balanced and proactive role in steering their organisations towards sustainable growth while upholding trust, transparency, and stakeholder confidence.

Establish and maintain vision, purpose and values

Establish and maintain vision, purpose and values

Determine/maintain the company’s vision and purpose to guide and set the pace for its current operations and future development

Determine/maintain the values to be promoted throughout the company

Determine/maintain and review company goals

Determine/maintain company policies

Decide strategy and structure

Review and evaluate present and future opportunities, threats and risks in the external environment; and current and future strengths and weaknesses and risks relating to the company

Determine strategic options, select those to be pursued, and decide the means to implement and support them

Determine the business strategies and plans that underpin the corporate strategy

Ensure that the company’s organisational structure and capability are appropriate for implementing the chosen strategy
Delegate to Management

Delegate authority to management, and monitor and evaluate the implementation of policies, strategies and business plans

Determine monitoring criteria to be used by the board

Ensure that internal controls are effective

Communicate with senior management

Exercise accountability to shareholders and be responsible to relevant stakeholders

Ensure that communications both to and from shareholders and relevant stakeholders are effective

Understand and take into account the interests of shareholders and relevant stakeholders

Monitor relations with shareholders and relevant stakeholders by the gathering and evaluation of appropriate information

Promote the goodwill and support of shareholders and relevant stakeholders.