By U. Lindgren
According to certain entry interviews with prime chairmen and senior executives, All Above Board examines the main features of the correct twenty first century board, how and why badly led forums fail, and what alterations could be made to enhance board habit and potency for top perform.
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Extra info for All Above Board: Creating The Ideal Corporate Board
They also agreed that it should be recognized and defined as a new profession with all the requirements for qualifications that go with a leadership role. This implies a new definition of the chairman as a distinct and recognized profession. The requirements of the fast-moving globalized world need a new generation of chairmen who take this as an inspiring profession from the age of 50 plus and who want to write a new chapter in sustainable, value-creating, corporate governance. Enhancing the chairman’s value In many countries, enough rules and regulations have been established in order to generate prosperity through corporations.
Then, make sure that future agendas for board meetings reflect these newly defined strategic roles and set a true strategic agenda for the board. Define clearly the situations where the chairman can/shall act as a spokesman for the corporation The general rule should be that the CEO is the company spokesman. However in some specific cases, where crisis management is required, the chairman can be assigned a role as part of the crisis management plan. But the task should be defined as to both scope and time.
Even if the same institutions play a part in nominating and appointing new board members, these board members do not carry with them a clear and explicit mandate for strategic direction and long-term goals for the company. The second comment by the Chairman referred to previously is even more worrying. Is the owner’s representative lacking relevant knowledge and understanding of the underlying business the company is engaged in? If so, is there enough motivation on behalf of the owner representative, typically an investment manager employed by the fund, to truly engage in the ongoing concern he/she is mandated to govern?