Today I would like to direct some attention to the aspect of company directors or board members. Many private companies globally sometimes appoint directors with very little knowledge of the implications of what they are doing, and oftentimes the directors themselves accept appointment without understanding what they are entering into. Many people do not know that the directorship title is associated with so many duties and responsibilities with corresponding risks that sometimes outweigh the financial benefits, status quo, networking, friendship etc. that attract people to such roles.
For public companies, usually the kind and status of people who get appointed to such roles make people assume that they know all that relates to the role, since public limited companies are much larger than most private ones. This however has not eliminated the kind of disasters we sometimes witness resulting from board malfunction even in the big corporations. But what are the critical issues that relate to directors and boards of companies? What should shareholders take into account while appointing directors, and what should the appointees or potential appointees themselves know and consider before accepting the appointments?
Can we take a look at what I think are principal issues?
Ok. I think we have had enough about this topic for today. Sincerely, haven’t we shared some very useful information for directors and also shareholders? There should be minimum waste of precious resources invested in companies. Company failures have to be avoided and directors including shareholders play a critical role in this respect. I’m simply trying to improve this role through the above points.
Thanks for reading the blog, and have a fantabulous new week!
The Wise Entrepreneur