Board governance is a crucial component of a corporation’s success, but it comes with its own setbacks. There are always new obstacles to overcome whether it’s making sure the board’s knowledge is up-to-date with best practices or overcoming resistance to change.
This article outlines a variety of emerging best practices that are able to propel a company to the next level. It focuses on the latest developments in the realm of board continuing education, and provides best practices in relation to director evaluations and committee rotation. Additionally, it discusses how the use of a dedicated portal for board members can improve transparency and increase efficiency.
A strong, efficient board requires the proper mix of directors. It’s important to ensure that the board consists of members with a wide range of skills, experiences and backgrounds to bring diverse perspectives to discussions about strategic issues. It’s also important to establish an environment of trust and transparency within the board in order for directors to communicate freely with one another.
The board should be free from external influences that could influence their decision-making. This is essential for maintaining governance and protecting a company’s reputation. It’s also important for the board to set a clear image at the top, by ensuring high ethical standards and showing the utmost respect to employees, shareholders, and the community. Additionally, the board must ensure that they provide enough time for executive sessions each board meeting in order to fulfill their legal obligations.
