The Board’s role is to ensure that the Company is run in accordance with the law, sustainably and in the interests of all of the stakeholders.
Stakeholders are:
- Shareholders,
- Employees, and
- Lenders
To be sustainable, the Company must generate sufficient revenue to cover its costs over the long term, operate in a way which can be adapted or continue over time and with due regard to the need for skilled employees who are productive.
It is also essential that the Directors are aware of the laws which apply to the Company in particular and companies in general (for example, modern slavery, laws relating to discrimination, health and safety, privacy and data protection, governance, and financial reporting). It is not unusual for Directors to seek external legal advice on such matters.
There may also be specific regulations which relate to the Company’s area of business (for example provision of telecommunications services, financial services or security services). The Directors should be informed about these regulations and ensure that they are adhered to, to ensure the sustainability of the Company.