Welcome to the International Association of Potential, New and Sitting Members of the Board of Directors (IAMBD)
We have the duty to prudently represent the interests of the shareholders. We must understand the needs and desires of employees, customers and regulators. We must understand the risks, and exercise oversight. Year after year, we must do more, and we accept more responsibilities.
Although it is impossible to avoid mistakes, we can avoid some of the negative consequences, like liability and litigation damages. Yes, perhaps we are covered by a comprehensive liability insurance policy. It is good to remember that we face risks greater than insurance coverage alone can address.
We must fulfill two essential duties while performing our functions:
1. Duty of diligence: We must act in good faith, and do what a reasonably prudent person in a comparable position would do under similar circumstances. Before making decisions, we must consider all material information reasonably available to us. We must learn, and we must be able to provide evidence that we had the necessary knowledge to make informed decisions.
2. Duty of loyalty: We must not misuse our position of trust for our private interests.
To make a long story short, we must make informed business decisions in good faith.
Every company must insist on a thorough orientation program for new directors, and an ongoing education program. Directors should be well informed about the company’s regulatory environment, compliance challenges and obligations. They must be fit and proper. As the legal and regulatory environment is constantly changing, the need for education is continual.
The mission of the IAMBD is clear: To help directors make informed business decisions in good faith.
The International Association of Potential, New and Sitting Members of the Board of Directors (IAMBD) offers standard, premium and lifetime membership, networking, training, certification programs, a monthly newsletter with alerts and updates, and services we can use.
The association develops and maintains three certification programs and many specialized tailor-made training programs for directors.
Join us. Read our monthly newsletter with news, alerts, challenges and opportunities. Get certified. Provide independent evidence that you are an expert.
President of the IAMBD
Sign up to Become a Standard Member and to Receive our Monthly Newsletter
Privacy and Legal: https://www.iambd.org/Privacy.htm