Board members recruitment

1 year ago

Boards are usually found in medium or large companies. Boards exist in both the private and public sectors, but the selection of board members often differs.

The board is often formed so that the company's shareholders can withdraw from operational activities and work successfully at the strategic level of the company's management.

The public sector usually publishes a public tender for the selection of board members. In this case, the selection of board members lasts a specific period, during which the most suitable persons are selected from the candidates (or found).

The private sector may not publish a public tender, so board members may be recruited without disclosing this information directly by the company itself or by ordering these services through a selection agency. The selection of board members and its process are generally not different, regardless of whether board members are selected for state-owned enterprises or private equity firms, although again it is worth noting that state-owned enterprises have more formalities and bureaucracy in this matter, as well as policies in some cases.

The number of board members is determined by the company's articles of association. There must be at least 3 board members. The board is elected by the board of supervisors for the period specified in the company's articles of association, but no longer than 4 years. If the supervisory board is not formed, the board is elected by the general meeting of shareholders. The board elects the chairman of the board from among its members. The board performs its functions for the time specified in the articles of association or until a new board is elected and begins work, but no longer than until the ordinary general meeting of shareholders held in the year of the end of the term of the board.

Only a private person can be elected as a member of the board. The number of terms of office of a board member is not limited.

Although board members in Lithuania do not earn relatively much, they usually devote a small part of their time to boards (1-2 days per month). So there are cases when certain persons are professional and multiple board members who belong to several different boards at the same time.

The selection and search for board members is carried out by Saulius Vanagas, the founder of VOODOO executive and highly qualified specialists recruitment and headhunting agency.