Maryland Board Member Agreement
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FAQ
A board member agreement is an internal document that clarifies the obligations, roles and responsibilities of board members, as well as their rights and the company's expectations of them. It also formalises the agreement of the director to abide by these requirements. Table of content hide.
In the state of Maryland, the board must include at least three directors who are unrelated to each other. Maryland requires the following board positions: president, secretary, and treasurer. These directors serve as the board officers.
State laws determine which officers for the board of directors are required. Boards can add officers and tasks if they choose to. For most nonprofits, the board elects officers among themselves. The bylaws typically decide whether the treasurer has to be a member of the board.
Any number of offices may be held by the same person unless the articles or bylaws provide otherwise, except that no person serving as the secretary, the treasurer, or the chief financial officer may serve concurrently as the president or chair of the board.
In most states it is legal for executive directors, chief executive officers, or other paid staff to serve on their organizations' governing boards. But it is not considered a good practice, because it is a natural conflict of interest for executives to serve equally on the entity that supervises them.
However, to avoid actual or perceived conflicts of interest, questions concerning accountability, or blurring the line between oversight and execution, chief executives should be non-voting members of the board, unless not permitted by law.? See Recommended Governance Practices from BoardSource,?LP7?.