Directors owe their fiduciary duties to the Company as a whole and are expected to act in the best interest of the Company and not in the narrow interest of the stakeholders (typically shareholders) they represent. An independent mindset will enable the Director take a stand, when he/she is of the view that the company’s […]
“Communicating and interacting with stakeholders keeps them conversant with the activities of the Company and assists them in making informed decision” In today’s socio-political climate, cultivating the trust of stakeholders is critical to corporate success. Public and media scrutiny of what organisations say and do is immediate, relentless and unforgiving (where these are perceived as […]
In recent times, the media has become saturated with grim headlines on the impact of Covid-19 reverberating across the world and for the first time in modern history, the world is focused on one problem. As governments all around the world implement and extend lockdown in a bid to get their countries through what is […]
There are arguments in favor of term limits for Directors. By establishing Director tenure limits, organizations make room for rejuvenation and the onboarding of Directors with new skillset and relevant experience. Boards also set tenure limits to allow for membership to be refreshed periodically. As businesses evolve, the skillsets required for Board effectiveness change. Tenure […]
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 […]
The role of the Board is a crucial one and as such legislation and a plethora of cases recognize the Board as the alter ego of the Company. Although shareholders are owners, the complex nature of company membership does not allow it to exercise and carry out the far-reaching duties that are consequential to running […]
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 […]
A major responsibility of the Board is selecting the CEO. It must therefore ensure that it picks the right CEO and puts in place a succession plan that allows for smooth transition. With increased responsibilities and more stringent regulatory oversight, Boards need to ensure that they appoint CEOs who will allow them go to sleep […]
“Paying adequate attention to sustainability issues including environment, social, occupational and community health and safety ensures successful long-term business performance and projects the company as a responsible corporate citizen contributing to economic development.” Corporate Governance has long advanced beyond compliance and governance matters to include sustainability issues and other non-financial performance indices. According to the […]
“Full and comprehensive disclosure of all matters material to investors and stakeholders, and of matters set out in this Code, ensures proper monitoring of its implementation which engenders good corporate governance practice.” Corporate Disclosures constitute an important aspect of Corporate Governance. According to Healy and Palepu, the main aim of corporate disclosures is “to communicate […]