Governance of the board is the essential structure that sets corporations up to succeed but it’s not without challenges. There are always new challenges to overcome whether it’s making sure the board is current on best practices or overcoming resistance to change.
This article covers several emerging best practices that could be able to propel a company to the next level. It examines the latest developments in the field of board continuing education, and highlights best practices relating to director evaluations and committee rotation. In addition, it explains how the use of a dedicated board portal can enhance transparency and improve efficiency.
The right mix of directors is vital for creating a robust, efficient board. It is essential to ensure that the board is composed of people with a broad variety of abilities, experiences and backgrounds, so that they can bring a variety of perspectives to discussions about strategic issues. It is also important to foster a culture that promotes transparency and trust between board members, so they can freely communicate.
The board must be independent from any interests outside the company which could cloud their judgment in making decisions. This is essential for maintaining control and preserving a company’s reputation. It’s also essential for the board to set a consistent tone at the top by ensuring that they adhere to high ethical standards and showing fairness to shareholders, employees as well as the community. Finally, the board should make it a point to provide enough time for executive sessions at every regular board meeting to meet their automation and management improvement legal obligations.
