What is the role of a board in corporate governance?

Being that critical friend, asking challenging and thought provoking questions for discussion is key. Helping executive teams think differently to ensure they are delivering the corporate objectives whilst meeting the needs of often a complex range of stakeholders from staff, customers and shareholders.

A strong Board has the ability to transform an executive team from being a "team of leaders" into a "leadership team." This is when the magic truly occurs.

The board also plays a crucial role in guiding companies through turbulent times. Board members are expected to have greater interaction with Management at such times, and spend more of their time if that is required.

The board plays a vital role in ensuring effective and ethical leadership, sustainable value creation, and enhancing stakeholder trust.

Corporate Governance is the lynpin of institutional leadership. The Board of the organisation should have governance perimeters which must include personal and official conduct, grievance procedures for the management, the board as well as relationships with the stakeholders. Beyond a set of rules and regulations, where there is good governance the soul of the organisation is set aright to drive the core values.

Este aspecto es muy fácil de definir y muy difícil de conseguir. Hoy en día los conflictos de interés son muy difíciles de manejar y la gente que los tiene, en general, desarrollan una gran actividad que los hace muy atractivos para formar parte de un Consejo de Administración. Ser independiente a la vez que ocupas una situación destacada en tu profesión es una excepción. No tengo la solución pero creo que habría que definir con precisión lo que es un conflicto de interés y no generalizar sin medida. Sin duda no es fácil, pero en ciertas circunstancias, se pierde a gente muy valiosa por una definición muy laxa de lo que significa un conflicto de interés y hay que rodearse de personas que no los tienen pero que, por eso mismo, aportan poco.

1. Diversity - in gender, race, age, expertise, and cultural background. Diverse boards are more likely to have a variety of perspectives and approaches, which can lead to better decision-making and problem-solving. 2. Skills and Expertise - Board members should collectively possess a broad range of skills and expertise relevant to the company's business. 3. Independence - A significant proportion of board members should be independent directors, i.e., not part of the company's executive team. This independence is crucial for unbiased oversight and decision-making, especially in matters like executive compensation and performance evaluation.

In my view, the best board composition is to only have the CEO as the Executive Director on the Board. The remaining Board members should be non-executive directors. The Board chair should drive the Board agenda while the CEO should drive the company.

El problema es que muchas veces se buscan consejeros influenciables para hacer la vida de los ejecutivos más llevadera. De hecho a veces se les intenta comprar con los ingresos que perciben por ser consejeros. Dos prácticas que deberían de evitarse por el buen fin del gobierno corporativo

The board of directors often includes the CEO and sometimes the CFO of the company. Non Independent Non-Executive Directors can be from related parties like substantial shareholders. Independent directors are defined as Independent via a stringent set of disclosure rules. The Independent Directors can offer an unbiased, bird’s-eye view of any corporate action for the benefit of all company shareholders.

Aqui interviene mi alma sure?a. Es evidente que la estructura y la organización son esenciales, pero tambien es importante elegir gente comprometida con las responsabilidades que adquiere porque si no nada funciona. Esto es especialmente importante en las Fundaciones sin ánimo de lucro, donde el Consejo Directivo no recibe ninguna remuneración por su dedicación. Una de las tareas del presidente del consejo de dirección y del CEO de la organización es motivar al resto de componentes para que ayuden a conseguir la misión de la organización, lo que no es nada fácil, porque generalmente tiene otros compromisos que atender.

If an actual or potential conflict of interest arises on the part of a member of the Board, do the necessary declaration early on in the process, detail the nature of the conflict, have it duly recorded. Absention and recusing from considering or voting on the conflicted matter is absolutely the standard. Ask for minutes to be redacted if possible when presented to the conflicted Board member. It does not mean that by recusing, declaring or abstaining, the conflict vanishes, be clear with the manner in which the conflict is declared and managed at the Board proceedings.

The selection of board of directors should be based on right experience, contribution, competency, integrity, ethical compliance . Functional knowledge, having passion to take the company in forward direction ,having a clear vision of the company's business objective,and market dynamics , commitment to social responsibility , transparent dealings etc are the key aspects of a Director

Ethical compliance is a frequent challenge. There is high hope that each member is conscious of conflict, transparent, and proactive. However, all board members must remain aware and be willing to raise such issues concerning others when appropriate. The use of conflict of interest disclosures and a published policy help with this.

The Board needs to have peer to peer board evaluation periodically. The best practice should also include engage an external board consultant to evaluate its performance once every few years

Board evaluation is like taking a corporate "selfie" – it helps the board capture its strengths and areas for improvement, ensuring continuous growth and effectiveness. Just as individuals benefit from feedback to refine their skills, boards thrive on objective evaluation to enhance governance practices and stakeholder relations. Embracing external perspectives adds depth to this process, akin to seeking advice from a trusted mentor. By transparently reporting findings and taking action, boards demonstrate their commitment to accountability and excellence in corporate governance.

In a nutshell, Directors Direct while Management Manage! ???? The oversight of Board Directors ensures corporate governance of organizations by working closely with Management to make it happen ??. So the Board sets the direction and Management gets us there! The tough balance between conformance (to good corporate governance) and performance (for grow). ??

Understand the Role -Emphasize the importance of understanding the role and responsibilities of a board member. It's not just a title; it involves significant duties like strategy, oversight, and risk management. Value Diversity - Highlight the benefits of diversity in board composition. Different perspectives, backgrounds, and skills enrich discussions and decision-making. Focus on Strategy - Boards should not get bogged down in operational details. Their primary role is strategic oversight and direction. Ensure Independence - Stress the importance of having independent directors Foster Open Communication Prioritize Ethics and Integrity - Boards must set the tone for corporate culture Balance Short-term and Long-term Goals

Alinear intereses entre la Propiedad y la Gestión favoreciendo la continuidad a largo plazo y la generación de valor para todos los grupos de interés