Board governance is a crucial element of a company’s success however, it also has its own setbacks. Whether the issue is ensuring that the board is up to date on best practices, or overcoming resistance to change there are always new hurdles that need to be cleared.
This article discusses several emerging best practices which can take a company to a new level. It focuses on the latest developments in board continuing education and provides best practices related to director evaluations, committee rotations and other aspects. The article also discusses the use of a dedicated portal for board members in order to increase transparency and efficiency.
A successful, efficient board requires the right mix of directors. It is essential that the board is comprised of a diverse range of backgrounds, talents and experiences that provide a variety of perspectives in strategic discussions. It is also essential to create a culture which fosters trust and transparency among board members so they can freely communicate.
The board must be independent from any outside interests that could influence their judgment in decision-making. This is crucial for maintaining the integrity of the company and protecting its reputation. It is crucial that the board sets a clear image by promoting the highest ethical standards and demonstrating fairness to employees, shareholders or the community. Finally, the board should ensure that they have enough time in each meeting to conduct executive meetings in order to comply with their first board meeting discussion and decision making legal obligations.