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Board Gender Balance – a personal perspective
Will beneficial ownership registers spread around the World?
Governments have become more and more focused on the risks posed by opaque and confidential corporate structures. In particular the ability of a certain type of person to use such structures to hide the true ownership and origin of funds, thereby facilitating tax evasion and money laundering. Most bodies set up to tackle these issues …
Governing an entrepreneur – a dilemma
Zander has joined the board of a privately owned company that is growing rapidly and has plans to list within the next year or two. He is excited by the prospect of the IPO and determined to do a good job as a director, even though he has no prior board experience. He is finding …
Can there ever be too much transparency?
Can there ever be too much transparency? Transparency has been recognized as a vital attribute for organizational health and performance. Organizations that demonstrate transparency give voice for employee concerns. Leaders that are willing to be vulnerable in sharing even bad news create environments where employees can admit mistakes before crises erupt. So when is too …
Can a director serve two interests? – a dilemma
Xevach is a director on the board of a government trading enterprise. He also chairs the governance committee. The company has a significant geographic monopoly and owns and operates a vital piece of infrastructure in the industry. One of Xevach’s colleagues on the board, Yolanda, is a former director of a larger, competing, government trading …
When a director knows what isn’t in the papers – a dilemma
Winsome is a director of a large listed company. She has a strong track record in M&A advisory work and is now embarking on a non-executive career. She is finding the ‘hands off’ aspects of the role quite challenging as she is instinctively and by training a detail focused manager. She has been mentoring one …
Should the MD have a vote? – a dilemma
Victor is a director on a medium sized listed company board. The Chairman has been ill for several months and is not going to get better. He has announced that he wishes to retire. The Managing Director is keen that one of the directors, who had a strong track record as an executive within the …
Association boards and conflicts of interest – a dilemma
Ursula is a director on of an industry association. Although they use terms such as ‘Councillor’ and ‘council’ it is constituted as a board and the members have the same duties and responsibilities as directors under the corporations act. All directors are nominated by companies within the industry and serving on ‘The Council’ is seen …
Issues for a prospective owner director – a dilemma
Sam is an experienced manager and has worked for over twenty years in his industry. He has also sat on two not for profit boards and enjoys the governance role. Now he has an opportunity to buy an equity stake in a small business that has a product and service for which market demand is …
51% compliance with the UK Corporate Governance Code
Grant Thornton have issued their annual Corporate Governance Review for 2012; which is a review of the annual reports of the FTSE 350 to analyse their compliance with the UK Corporate Governance Code. The headline grabbing figure is that full compliance with the Code has hit a plateau, with 51% of the FTSE 350 being …
10 Myths About Boards of Directors
There are numerous myths that seem to persist about Boards of Directors. Here’s a list of 10 of them. Myth –The phrase “corporate Boards” conventionally refers to statutory, for-profit Boards. However, statutory nonprofit Boards are Boards of a corporation, too, so they’re both “corporate Boards.” Myth — A Board of Directors can delegate its fiduciary …
Different “Schools” of Ethics
In an earlier life, I taught business ethics. (Most of my undergraduate college credits are in philosophy.) So here’s a very concise overview of the major “school”s of ethics that are often taught in business ethics programs. Immanuel Kant’s Categorical Imperative (1700s) Kant asserted that a belief is an ethical principle if, and only if, …
How to manage excessive demands on time (from a powerful person)? – a dilemma
Issue around management of relationship with Government Minister when on a Government sector board.
Will the EU insist on 40% board gender diversity?
Women on boards has been one of the most contentious topics of the last few years. In the UK, we had the Davies Report in February 2011 which set out a series of recommendations with the aim of increasing female representation to 25% on the boards of FTSE 100 companies by 2015. Although this was …
Hopelessly conflicted? – a dilemma
Rina has asked for your advice. She is a long standing director of a holding company for a large group of companies. The holding company Chairman, Quentin, has been a friend and mentor to her over many years. Recently the holding company bought a stake in a small listed company and Rina was appointed to …
How to undo the damage a board has done? – a dilemma
Peter has asked for your advice. He is a director of a not-for-profit company in the arts sector. A few months ago his organisation’s funding was increased by 40%. The board and management were ecstatic. Shortly after the funding was announced the Chairman informed the board that he had authorised a staff member to change …