- February 3, 2022
- Posted by: Eunoia Law
- Category: © CG Series
Corporate Governance specifies the distribution of rights and responsibilities among the different participants in an organization. These participants include the board of directors, managers, shareholders and other stakeholders. We commence this series, zeroing in on a group of people who by their actions of inactions dictate the success or otherwise of the organization- the Board of Directors.
Every successful company is headed by a functional Board of Directors. The Board serves as a link between the various stakeholders (such as shareholders, competitors, customers, regulatory agencies, creditors, employees) and the company.
The key responsibilities of the Board include:
a. Providing strategic leadership on the core business of the organization;
b. Promoting ethical culture in the organization;
c. Exercising oversight and control by ensuring that management acts in the best interest of the all stakeholders on the one hand, whilst sustaining the prosperity of the organization on the other hand.
For the Board to effectively undertake its key responsibilities, there must be a perfect blend of the appropriate skillset, diversity (gender, experience, technical know how), competence, independence and integrity on the Board. High functioning Boards are literally a wealth of experience in various walks of life that often transcends the core business of the organization.
Therefore, when looking to setup an organization or revamp an already existing one, the very first focus should be on the structure of the board.
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