Keys to successful governance
Is the board an asset or a liability? Shareholders would like the board to be an asset. But this requires that it is established in the right way. The objective of a company is to create value in a sustained way. Shareholders have invested their resources in the company and expect the value of these resources to grow, and they would like to be able to recover the profits on their investment when they need them.
To create value a company needs continuous innovation, growth, correct investments, international deployment and to be able to benefit from opportunities that may appear (acquisitions, diversifications). All these things should happen within a solid financial framework that generates and uses cash while maintaining a solid financial structure. In turn, this means that the company has to be capable of making good use of all the options available in capital markets with all their alternatives (equity, venture capital, private equity, short-term debt, long-term debt, bonds, listing on the stock exchange).
See full Article: http://www.iese.edu/en/about-iese/news-media/news/2013/april/maximize-your-board-potential/
Posts
