Ideally, every member of your board can be present at each meeting you schedule. Real-world responsibilities often get in the way of that goal, though.
How to Ensure the Best Effective Board Room Governance?
To ensure effective remote board governance, it is necessary that the rules and regulations in the field of corporate governance are adapted to the real conditions in which they will be applied. This is why the updating of the principles has been accompanied by extensive empirical analysis. It is more difficult to assess the effectiveness of the effective remote board governance as a member of the Board.
The best effective remote board governance calls for a separate assessment of the performance of the company’s top managers, especially the general manager. In this case, the principles and procedures differ significantly from the approaches to the assessment of the Board, just to the extent that the activities of the Board on general management differ from the day-to-day management of the company. That is why the criteria for evaluating the effectiveness of the general manager and other top managers of the company as members of the Board should not differ from the criteria for evaluating other members. But at the same time, the company should have a practice of assessing the performance of members of the executive body.
A decisive factor of board room governance in the success of the assessment is the attitude of the members of the government towards this procedure. The chair can play an important role in this regard, his position on the assessment and the goals it pursues. His attitude towards obtaining results that really contribute to the improvement of the government’s work efficiency, his contribution to the successful development of the company, discussing the importance of a responsible approach to interviews (filling out questionnaires) in conversations with each member is an essential or even decisive condition for the assessment to be carried really meaningful.
The Best Recommendations for Effective Board Governance
The remote board governance is based on the following principles:
- professionalism and leadership of the Board of Directors, the attraction of independent directors to participate in the management of the Company;
- intolerance to corrupt behavior, formation of an effective anti-corruption system;
- completeness, transparency, reliability, and timeliness in the disclosure of information.
Effective remote board governance should create a talent pool to fill key positions. Nominations for inclusion in it should be regularly discussed. This practice will increase the stability of the company during periods of management change. The score for this criterion should be given depending on the presence or absence of relevant practice. Their active participation is especially necessary to ensure the adoption and implementation of a ready-made code when the recommendations being developed are of direct relevance to listed companies.
There is no one type of organization that is best suited to initiate or develop a corporate governance code. A wide variety of options lead to the implementation of quality codes. It is important to involve all stakeholders in the development process and to participate in the code development committee. It is important for the lead organization to consult with various agencies and organizations and take into account their possible contributions to the code-making process. The careful selection of the parties involved ensures not only that all important issues are taken into account in the content of the code, but also helps to ensure their support during the implementation of the code in practice.