How effective are company directors? A checklist for analysts and investors
Filed in archive boards of directors by leon on November 11, 2005

in the wood? Naive passengers who don't ask the tough questions. The latest edition of Boardroom INSIDER gives some tips on what to look out for on a company's board when you want to know whether it has any prospects. Look beyond the resumes. And remember, it's all well and good to have independent directors but independence is a state of mind. You can be technically independent but if you don't know how to ask hard questions, drill beneath the surface and, if necessary, walk away from the board, then you're not independent at all. Check to see what the directors actually bring to the table. The newsletter cites General Motors as an example where the directors have no experience or know-how in making cars. A new study out of England identifies what's needed and what isn't. Big picture thinkers, an understanding of the business environment confronting the company and the ability to leave your ego at the door are essential. But according to the study, fewer than one in three board members are helping new non-executive directors get up to speed. They remain ignorant babes in the wood. And that's bad businessPermalink: How effective are company directors? A checklist for analysts and investors
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