Board Responsibilities
The CEO or executive director should fire company staff. The board oversees this person. What protects board members against legal problems? D&O insurance offers important protection if directors and officers fail in their duties.
The board hires, evaluates, and may fire the ED. The board should not manage other employees. Membership helps nonprofits fundraise, develop boards, save money, and advocate.
Board members guide nonprofits ethically and legally. Officers work under the board’s direction. The health minister chairs WHO’s Executive Board.
Firing Process
The board decides if firing an employee is absolutely necessary. Steps before firing staff include voting or giving a chance to improve. The board chooses a nonprofit’s directors.
Firing a nonprofit board member should be easier than firing staff. “No confidence” votes or scandals may require removing members. Organizations face critical moments around firing decisions.
Founder’s Position
The board hires, evaluates, and may fire the ED. A majority vote of the board of directors can fire founders. The board oversees this person.
State laws allow owners to appoint and remove directors. Texas nonprofits need at least three directors.
Founders are vulnerable to being fired. Listening for complaints helps founders avoid firing. Getting promises in writing protects a CEO’s position.