M2S1 Corporate Governance ๐๏ธ 2 Flashcards
Voting rights and appointment of CEO etc falls under the concept of
Board Politics
- Not a part of the company but can be a director
- Have ownership but not a part of the institution
Independent Director
- Balance decision making and the minority group
- Non biased in terms of interest
Independent Director
- no affiliation to the company
- freedom from conflicts of interest
Independent Director
- Part of the BOD but not involved in management
- linked to the company in various capacities, like suppliers, family representatives, friends, advisers, or shareholders.
Non-Executive Director
- Decision making
- executive positions within the organization
- CEO or other senior roles like vice president.
Executive Director
Directors should have triple I
Integrity
Intellect
Independence
Core Competencies for Directors
Integrity
Intellect
Independence
Networking:Build useful professional relationships.
Communication: Convey ideas effectively.
Critical Thinking: Make informed decisions.
Financial Literacy:Understand financial statements.
Strategic Planning: Develop long-term goals.
Convey ideas effectively.
Communication
Understand financial statements.
Financial Literacy
Develop long-term goals.
Strategic Planning
Make informed decisions.
Critical Thinking
Build useful professional relationships.
Networking
5 things that constitutes an effective working board
- Unity
- Networking
- Independence
- Commitment
- Expertise
improve board efficiency by focusing on specific issues, saving time in general meetings.
Committees