At Koester & Associates, we believe that the concept of Modern Governance had its inception in July 2002 with the release of a report entitled "The Role of The Board of Directors In Enron’s Collapse" issued by the Permanent Subcommittee on Investigations of the Committee on Governmental Affairs – United States Senate. This report’s conclusion served as the basis for important changes in Board governance in the United States.
The Board has defined roles and responsibilities. Ultimately, the Board must be held accountable for its roles and its responsibilities.
Over the years, Koester & Associates has developed a standard set of basic responsibilities for governing Boards.
The collective Board is responsible for the following:
1. Oversight (most often: financial and management)
2. Vision & Plan (steering the entity)
3. Ethical Framework (accountable and transparent)
4. Board Management (its responsible for itself)
Individual Directors have the following responsibilities: