An ex officio member provides the services of a chief who has the necessary knowledge and tools to understand this strategic picture. Facilitate sound strategic financial leadership, as well as help, manage day-to-day business operations
Who Is an Ex Officio Member?
An ex officio member is a member of a body (in particular a board, committee, council) that is part of it by virtue of holding a different position. Depending on the type of activity of a financial institution, it is recommended that the committee include persons with experience and expertise in relevant areas – for example, in the field of insurance, banking, and so on.
According to Robert’s Rules of Order, the term refers only to how a person becomes a member of the body. Accordingly, the rights of an ex officio member are exactly the same as those of other members unless otherwise specified in the rules or by-laws. In some groups, ex officio members may often abstain from voting. Besides, the totality of the information contained in the databases and the information technologies and technical means that ensure its processing.
Any ex officio membership (for example, on committees or a board of directors) is determined by the non-profit association’s charter or other official documents. For example, the bylaws often provide that the president of the organization will be an ex officio member. The evaluation procedure of an ex officio member consists of the following steps:
- Determining and agreeing on evaluation criteria, taking into account the characteristics of the company, the structure, and composition;
- Selection of sources of information and development of forms for collecting information (questionnaires for members of the board of directors/top management/shareholders, etc.);
- Collection of information about the activities of the board of directors (minutes of meetings, reports, etc.);
- Questioning and surveys of participants in corporate relations (members of the board of directors, top management, shareholders, etc.);
- Analysis of the collected information for compliance with external requirements and expectations, as well as internal goals and needs of the company;
- Preparation of a report and recommendations for improving the work of the board of directors.
How to Perform the Successful Work of Your Committee with the Help of an Ex Officio Member?
And today, it is becoming more and more difficult to be an effective member of the Committee. Against the backdrop of high-profile corporate scandals of the late 1990s and early 2000s, the boards of directors and, in particular, their role in preventing such cases again became the focus of attention of shareholders, the public, and regulatory authorities. In fact, we are talking about improving the efficiency of the functioning of the Board of Directors.
However, as practice shows, it is extremely difficult to improve its work if this governing body does not subject its activities to constant critical evaluation. Moreover, if evaluation is not carried out for years, there is a danger that an inefficient way of working may take root, and then it will be even more difficult to change it. In this regard, the board of directors is encouraged to make decisions in compliance with accepted environmental and social standards.
An ex officio member that can be a chief of a committee provides you with accessible, expert guidance to help your start-up achieve important goals in an organized manner. He will make sure you have an outsourced CFO provider with extensive experience. The trusted professionals have previously served as the in-house committees in highly successful companies, and they bring you that wealth and real business knowledge!