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 […]
Section 269 (1) of the Companies and Allied Matters Act (CAMA) 2020 defines a director as a person who is duly appointed by the company to direct and manage the business of the company. Every company is required to have a minimum of two directors (Section 271 CAMA). Directors have been categorized over time into […]
The disruption that has characterized 2020 on personal and corporate levels across the world has been phenomenal, with far reaching impact. On a corporate level, it is now apparent that Boards can no longer rely on traditional risk management and business recovery planning efforts which clearly did not anticipate the major disruption that Covid-19 brought […]
Given that Directors are effectively agents, appointed by the shareholders of the to manage the affairs of the Company, a Director must not allow personal interest to affect his or her independent judgment. When a director has an interest, which impairs or can reasonably be perceived to impair their ability to perform their duties and […]
Trade is one of the key factors responsible for interaction among nation-states. It involves goods and services, and connects communities, countries and continents. Essentially, a free trade area is a geographical area where there are no import tariffs between or among the countries that have signed a free trade agreement. The importance of a free […]
Passing the baton of leadership or picking the right replacement for a departing CEO is a critical challenge for the Board of Directors. It is oftentimes a complex decision given the interplay of corporate politics and personal emotion. As the CEO’s performance and that of the Company are so intertwined, CEO succession is a key […]