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Major Functions of a Board of Directors

  • Establishes and maintains the legal entity, knows the bylaws, and makes contracts on behalf of the association.

  • Acts as trustee of members' interests by ensuring that the assets are secure and that the quality of service, programs, activities, the prestige, and goodwill of the organization are preserved.

  • Assures that the purposes, objectives, goals, and policies are current and followed. Evaluates the major facilities and resources.

  • Provides operating requirements for qualified management and financial resources, and generates member and community support. Ensures that productive board and committee meetings are held.

  • Prevents unauthorized actions. Reviews reports, staff performance, and standards. Provides for reports to the members.

The Ideal Director

The individual should be a statesman, willing to work unselfishly on behalf of the association for the good of all. He or she must seek no personal gain in the performance of the duties as a director. The individual should have knowledge of the industry or profession and should be flexible and able to compromise and cooperate for the good of the group.


*From Business Associations for the 21st Century, Larry S. Milner, CAE, Editor,
1999, p.16. Used with permission of the Center for International Private Enterprise.