A Board is said to be dysfunctional when it fails to effectively fulfil its responsibilities and provide proper leadership and strategic direction to the Company. Dysfunctionality on the Board may exist when the Board’s performance is suboptimal. According to Principle 1 of the Nigerian Code of Corporate Governance (NCCG), “A successful Company is headed by […]
Board diversity reinforces the breadth and robustness of experience, skill, knowledge, background, and heterogeneity of members of the Board. Board effectiveness is hinged to a large extent on its diversity across these broad areas. Conversely, a diverse Board as a collection of individuals, each with his or her perspectives, interests, and concerns, could also imply […]
Corporate culture has been defined as the shared values, attitudes, standards, and beliefs that characterize members of an organization and define its nature. An organization’s corporate culture is a major driver of performance as it defines the way things are done within the enterprise. Maintaining cultural coherence across the organization ties into the success or […]
The Board is to a large extent responsible for corporate success and as such it is essential for aspiring Board members to be well equipped to deliver on this onerous responsibility. The role of the Board is to review and evaluate present and future opportunities, consider risks, reinforce strengths, identify weaknesses and generally provide direction […]
Many businesses take out insurance to mitigate potential risk exposures and uncertainties – such as flood, hurricane, fire, burglary, etc. They install security systems to safeguard against theft and other threats, and back up data to protect proprietary information. There is a tendency to get too busy with the day-to-day operations to the detriment of making […]
Business Ethics reflect in the activities and mindset of corporates, compel them to operate responsibly and within the bounds of moral constraints. These also dictate the behaviours and policy responses of businesses in difficult ethical situations and indeed form the basis for good corporate governance practices. In August 1970, Ford Motors began producing the Ford […]
There are some common misconceptions about the role of the Board of Directors. Some people think the Board is a mysterious group of people who waltz into head office and shut themselves in the Boardroom every quarter with stern faces, attending long and boring meetings where they criticize and lambast Management. Another group believes the […]
Crisis management is a critical component of business continuity that should be prioritized by the Board. Inevitably, unforeseen circumstances could arise, which if not managed properly can shake the very foundation of the Board and by extension that of the Company . Planning for and emplacing an effective crisis management plan will better-position the Board […]
The President recently signed into law the Banks and Other Financial Institution Act (BOFIA) 2020. The Act replaces BOFIA 1991 and seeks to establish a more responsive and investment stimulating regulatory regime that will promote robust economic activities and inclusiveness, protect the financial institutions and safeguard the interests of all stakeholders. Indeed banks, particularly Commercial […]
To fulfil its mandate effectively and provide the required leadership to Management, Board independence is imperative and familiarity that comes with longevity is a threat to Board independence. There is a healthy debate in favor and against tenure limits for Directors. The Company and Allied Matters Act (CAMA) clearly provides for the appointment, removal, age […]