Cheryl Chan FAICD’s Post

Some timely callouts! I wonder, will recent events spur a new line of questioning from D&O underwriters? Is there a better way to assess corporate culture and whether there is constructive challenge between the board and executive team?

A board director's job is getting more complex. But they need to maintain their own clear lines of sight into the businesses they oversee. In his latest opinion piece, AICD CEO & MD Mark Rigotti highlights three key themes for boards from the past year: https://bit.ly/3AY0ke4 #AFR #Oped #DirectorDuties

According to research done by Harvard Business Review, you should have at least one long-tenured director on your board. This article provides some great examples of why it's important to have a balance of experience on your board.

This raises a very good question. Isn't the whole NED role a bit odd anyway? The perfect NED is supposed to give advice, guidance and to challenge pre-conceived ideas whilst remembering that they are not an executive running the business. They are also supposed to be clubbable ( of course there is an inconsistency here which may not be capable of being reconciled). How useful is this approach, are they simply rubber stamps? How many NEDs had the courage to stop being clubbable and to call out corporate misdemeanours, or major corporate failings? You are not supposed to want to roll up your sleeves and plough in with your wealth of experience and aptitude if you want to be a NED. You are told that that is the preserve of the executives and that you are stepping outside your box, but where did such useless received wisdom come from? Shouldn't NEDs truly help to run the business? Is British Industry ever going to be truly great again with such a limited approach?

Mentioning the words 'effective corporate governance' may conjure an image of a full board of directors...but committees are where the real work of the board happens. According to MIT Sloan, companies benefit when they recognise board committees. Why? Because committees are an essential mechanism for getting more input from each individual director. Learn more: https://heyor.ca/p3AYbn #Business #Board #Directors #BoardCommittees

Mentioning the words 'effective corporate governance' may conjure an image of a full board of directors...but committees are where the real work of the board happens. According to MIT Sloan, companies benefit when they recognise board committees. Why? Because committees are an essential mechanism for getting more input from each individual director. Learn more: https://heyor.ca/p3AYbn #Business #Board #Directors #BoardCommittees

Corporate governance recognizes that there are three classes of Directors,Executive Director (made up of atleast a CEO and one other,Non-Executive Directors ( shareholder representative or with some level of dealing with the bottom line) and Independent Non-Executive Directors. The importance of knowing about the classes is that issues of conflict of interest can easily be dealt with....it's when conflict is denied that problems come....King Iv clearly defines what amounts to conflict of interest and issues of perception crop in from a reasonable person...Independent Non Executive Directors are expected to be in the majority...sadly it's hardly ever the case....boils down to bottom line

If you’re in NL and want to stay current in good governance practices, then you need to be at this session!

A great session for anyone looking to better understand corporate governance.