The various international, governmental and regulatory organizations continue to issue legislation, regulations, interpretations and other requirements, in some cases, incorporating hefty penalties on companies failing to institute ‘good board governance’.
The difficulty remains that there is no widely accepted definition of ‘good board governance’, thereby leaving much room for interpretation and, as a consequence, leaving the possibility for Companies being ruled as insufficiently up to the mark.
Areas that should be on any list defining ‘good board governance’ should include:
As an essential part of what constitutes ‘good board governance’, is ensuring that the Board of Directors has access to reliable, accurate and timely information and documentation is of critical importance. There exist tools that allow companies’ Boards of Directors to be more time and cost efficient.
By Onésimo Alvarez-Moro