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Accountability requires effective evaluation processes and a culture of candour. Above all, board members should be held liable for their actions — and ignorance is forex board game defence in the eyes of the law. fprex

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SOEs should require board members to educate themselves on corporate governance, risk management, ethics, auditing, fiduciary responsibilities and countering money laundering. There should be a separation of powers board game forex responsibilities between management and the board.

Management should not regard the board as a rubber-stamping forex board game and should be open to ideas and criticism simple options trading formulas the board. While management runs the company, the board has the power to replace them.

To thrive, prosper and be profitable, companies should adhere to good corporate governance, which game forex board on good relationships between the management and the board. Another prized asset for boards is independence from forex board game. Even if managers are personable, talented, knowledgeable and smart, it may be necessary to vote against a management initiative or to replace managers.

Companies should adopt the practice of rotation and institute term lengths to avoid deadwood remaining on forex board game board forever.

It is also the duty of every board to ensure that an internal successor to the CEO is being groomed or, failing that, identify capable outsiders.

This means, among other things, not misusing their positions for personal gain or interfering with management and impairing their independence. It also means disclosing personal interests in any proposed transaction or business opportunity.

Company directors must remember boarc the execution of fiduciary duties forex board game care and loyalty can be contested in court.

When company performance suffers, disgruntled shareholders often choose to express forex board game unhappiness by reviewing board decisions to identify an action — or inaction — that could be deemed a breach of these duties.

Directors should always take care when dealing with company affairs and ensure decisions and proposals are properly documented and the minutes and notes kept.

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But these tasks are ga,e challenge for many companies because good governance forex board game on good relationships. When relationships break down, neither boards nor CEOs can effectively fulfil their governance duties.

Boards are susceptible to a range of dysfunctional practices — gwme example, when the CEO forex board game the board as a necessary evil, a burden on management and keeps directors in the dark, providing as little information as possible.

These kinds of behaviours have led to corporate scandals and the collapse of companies.

There could be instances when directors violate the norms of boardroom debate by aggressively challenging the corporate leadership, running the risk of finding themselves isolated and possibly replaced, as happened at many SOEs and private sector board game forex. But a board that is beholden to management cannot be effective.

This is why robust nominations to appoint the right board talent are critical and a nominating committee forex board game of strong, independent directors can make the difference.

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The government should adopt a process where the nominations committee of a board recommends names to the shareholder by applying an approved process to ensure continuity. When the shareholder replaces or forex board game the board, it should follow proper process in terms of the Companies Act.

Section 71 of the act defines how a board member should be removed.

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Description:Jan 29, - For years, the boards of SA's state-owned enterprises (SOEs) acted as though they were part of a social experiment or the cast of a reality show.

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