What does the Chairman of the Board do?

The Chairman of the Board is responsible for making sure that the Board effectively sets – and implements – both direction and strategy.

The Chairman is a direct liaison between the Board and company management. In smaller companies, this role is often performed by one person who serves as Chief Executive or Managing Director as well.

The Chairman’s roles and responsibilities are to:

  • Provide leadership to the Board of Directors
  • Take responsibility for its development and composition, including reviewing the Board’s size, the split between executive and non-executive Board members, and finding the right balance of personalities, experience, and age to ensure its success
  • Ensure that the Board is properly informed
  • Effectively plan and conduct Board meetings
  • Make sure that all directors are involved in Board work
  • Push toward consensus in meetings, synthesise, and summarise agreements
  • Communicate clearly and effectively with shareholders and stakeholders when necessary
  • Represent the company to the outside world, including presentations of aims and policies

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Frequently Asked Questions (FAQ)

What is the role of a chairman?

A Chair’s main role is the effective running of business meetings. They will oversee meetings of the Board of Directors to keep things on track, resolve disputes and make sure that the time used is best spent.

What does chairman mean in business?

The Chairman of a business runs its Board of Directors. They’re responsible for protecting investors’ interests, such as the business’s profitability and stability, as well as the organisation and smooth running of Board operations.

What is difference between chairman and director?

In a business, a Chairman is often elected or appointed to chair Board meetings. Directors are often more like traditional employees operating at the highest level of management and will usually sit on, but not run meetings.

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