What is a company chairman? Michael Tait explains:

A company chairman (Chair) is the highest ranking officer in the corporate governance structure of a company. The board of directors typically select and appoint the Chair.

The chair holds a leadership position in guiding and overseeing the company’s activities.

These are the fundamental responsibilities of the Chair.

Company chairman -Michael Tait

Leadership and guidance: The company chairman leads the board of directors and shapes the company’s strategic direction. Collaborating closely with the CEO (Chief Executive Officer) and other executives, they guide and support the achievement of the company’s goals.

Board management: The chair oversees the board of directors, scheduling and presiding over meetings to ensure effective and efficient operations. They also keep board members well-informed, engaged, and accountable in fulfilling their fiduciary duties.

Board composition and governance: Playing a pivotal role in board composition, the company chairman appoints and removes directors. They actively identify and recruit qualified individuals for board service, promoting good governance practices. Additionally, the chair monitors board performance and ensures compliance with relevant laws and regulations. The Chair also ensures there are succession plans in place for Chair and other directors.

Shareholder relations: The chairman frequently represents the company to shareholders, serving as a liaison between the board and shareholders. They engage with institutional investors, participate in shareholder meetings, and address concerns or questions raised by shareholders.

Stakeholder management: Interacting with key stakeholders such as employees, customers, suppliers, and community representatives, the chair contributes to fostering positive relationships. They may also participate in significant negotiations or discussions involving stakeholders.

Risk oversight: The chair oversees the company’s risk management practices, ensuring the presence of appropriate systems to identify, assess, and mitigate risks. Collaborating with the board and executive management, they establish effective risk management strategies.

External relations and representation: Representing the company to external parties, including regulators, government authorities, industry associations, and the media, the chair may participate in industry conferences, public events, and other forums where the company’s interests are presented.



Wikipedia – What is a Chairperson