Wednesday, June 30, 2010

Some Discussion at Last ...

... on the need to improve the functioning of corporate Boards. Please click on the title to link to an article from Forbes.
The article unfortunately is a bit shallow though some discussion is better than nothing. Fundamental improvements are needed, quickly, among other things, in:
  • Giving Boards access to information and to company personnel that isn't controlled by management;
  • Board members not being hand picked by senior management and more representative of all shareholder/stakeholder interests;
  • Making the views of dissenting Directors known to shareholders/stakeholders;
  • Boards and other Advisers including Accountants and Legal Counsel to work closer together, frequently independent of management;
  • The above will likely involve each Board member spending more time on these responsibilities so a discussion of appropriate compensation would also be necessary.

This is only a partial list but will set the ball rolling in the right direction. The creative use of modern technology should also make implementation a lot more practical.

No comments: