HOW TO HAVE THE BEST BOARD OF DIRECTORS

According to Wikipedia, a board of directors is a group of people who jointly supervise the activities of an organization.  Illinois Association of Mutual Insurance Companies, IAMIC, is more specific by stating, "It is the body of key decision-makers."  While the responsibilities of boards may vary, I think we can all agree the members are integral to the success of our companies.

In some companies, members of the board do not fulfill their roles to the fullest potential.  In many companies, members fill seats vacated by a family member.  As a result, much of the responsibility of our mutual falls on the shoulders of the manager.

The Board of Directors section of the IAMIC Mutual Assistance Manual is very thorough and will assist farm mutual managers in guiding their directors in successfully executing their duties for the best interest of the company.

FARM MUTUAL ACT OF 1986 

The basic director qualifications and responsibilities are outlined in this act.  Company board members should read and become familiar with the Farm Mutual Act.

MUTUAL ASSISTANCE MANUAL - DIRECTORS SECTION

In this section, you will find detailed information that will assist your company board members in executing duties and responsibilities to their fullest potential.  Such as:

A board member must be a policyholder of the company and should attend all board meetings.  In addition, members should willingly support board decisions and discuss new ideas that will strengthen the company.  IAMIC events are excellent resources to provide directors with fresh ideas to improve your company.  We can probably all agree that our strongest Illinois mutual companies have an active director and manager participation at events.   

It is board member responsibility to serve as a positive example to company policyholders and the general public.

A successful company benefits from a board of directors who: 

 

  • FOLLOW BYLAWS AND ARTICLES OF INCORPORATION  
  • KEEP MEETING INFORMATION CONFIDENTIAL
  •  EMPLOY A COMPETENT MANAGER
  • DO NOT ACT ON BOARD MATTERS INDEPENDENTLY
  • ATTEND COMPANY MEETINGS
  • UNDERSTAND LEGAL RESPONSIBILITY TO INSUREDS
  • MAINTAIN AN INTEREST IN THE COMPANY 
      

 

The role of the Mutual Board of Directors is essential to the success of the company.  Let's keep our companies thriving by sharing and discussing the director information found in the Mutual Assistance Manual with our directors on a regular basis.

Click here to access the Mutual Assistance Manual.  The manual contains valuable answers to your questions and will assist your company in so many ways.