Board governance is the crucial structure that sets corporations up to succeed however it’s not without problems. Whether the issue is making sure the board is up-to-date on the latest best practices or getting past resistance to change, there are always new hurdles to be cleared.
This article reviews a number of emerging best practices which could help take a company to a new level. It examines the latest developments in board continuing education and identifies the best practices related to director evaluations, rotation of committees and other aspects. In addition, it explains the ways that an online portal for boards can enhance transparency and improve efficiency.
The proper combination of directors is essential to create a strong, efficient board. It’s important to ensure that the board consists of people with a broad spectrum of expertise, experience and backgrounds to bring different perspectives to strategic discussions. It’s also important to establish the culture of trust and transparency within the board and allow directors to talk freely to one another.
The board should be independent of any external interest that might cloud their judgment in their decision-making. This is crucial for maintaining control and preserving a company’s reputation. It’s also important for the board to set a clear direction at the top by upholding high ethical standards and showing fairness to employees, shareholders as well as the community. In addition, the board should ensure that they allow enough time for executive sessions at each regular board meeting to fulfill their legal obligations.
