The Effective Director

Building Individual and Board Success

Kogan Page, 2008

15 min read

10 take-aways

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Good, responsible directors can help your corporation grow faster and achieve its goals.

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Members of boards of directors have special responsibilities and fill important roles in corporations and nonprofits of all sizes. Unfortunately, not all directors or boards are effective. To cure that problem, Neville Bain has written a handy beginner’s guide for directors of U.K. firms that are subject to London Stock Exchange regulations and other laws. This practical book offers corporate case studies and checklists for assessing everything from overall board effectiveness to directors’ leadership traits and “ethical health.” Readers will find relevant topics and useful pointers in each well-organized chapter. getAbstract recommends this primer to leaders who want to bring more value to their roles, their boards, and their public or private U.K. corporations.

Summary

Acting in Your Company’s Best Interests

As a corporate director, you create value for your organization by executing thoughtful, realistic plans. This involves developing and maintaining a long-term vision, forming a mission or strategy to meet that vision, delegating authority to management, defining your firm’s belief system and standards of conduct, and being accountable to – yet unbiased toward – shareholders. You must consistently act in the best interests of the company.

If you are forming a new board, first determine how it will work. Decide which tasks the board will perform and which it will delegate to subcommittees. Certain tasks are always the board’s responsibility. For instance, in the United Kingdom, the law requires boards to approve dividend-related matters. The board must also approve the annual report and the choice of outside auditors, and make recommendations to shareholders. Your board should review its list of responsibilities annually.

Directors’ other tasks include strategy development, budget oversight, and approval of such treasury functions as risk management, significant expenditures and changes in accounting policy. The board influences...

About the Author

Neville Bain is chairman of the Institute of Directors and currently sits on the board of Biocon and Provexis. He is the author of four books, including The People Advantage.

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P. N. 1 decade ago

TO read

Neville Bain