The counselor has his duties to the organization. The concept of representation by the counselor of any stakeholder is inappropriate. In case of the perfect governance training you need to be specific.
Composition of the Board of Directors
The performance of the Board of Directors depends on the respect and understanding of the characteristics of each of its members, without implying the absence of brainstorming. Therefore, the diversity of profiles is fundamental, as it allows the organization to benefit from the plurality of arguments and a decision making process with higher quality and security.
The Board of Directors must have from 5 to 11 members. Less than this, there is not enough diversity to support the decisions. More than that, decisions are getting very slow. In addition, the Board of Directors must be composed of an odd number of members to avoid a tie in the decisions. Another important point is that board members should not be celebrities otherwise they may not have enough time to devote to the organization as they should.
Growing up is an ambition of all businesses and especially of many entrepreneurs. However, there is no point in aiming for growth if it does not occur properly and without any planning. One of the factors for any company to grow healthily is to have structured Corporate Governance. Chances are you’ve heard of this term, but do you know what it means and how it works in practice?
We can go further in this question: Do you know how Corporate Governance can help your company leverage its results? Be aware that the methods that involve this practice are considered one of the best for running a business, bringing out the efficiency and transparency in its management.
What is Corporate Governance?
You can define Corporate Governance as the set of processes, regulations, policies, and laws that define how a company is managed. This mainly involves the relationship between employees, partners, directors and their internal supervisory bodies.
According to the Institute of Corporate Governance, good corporate governance practices are responsible for converting principles into objective guidelines. These guidelines are intended to facilitate access to resources and contribute to the quality of the organization’s management, its existence and the good of all its members. If it were to summarize, you can take it simply as a set of best practices for improving the relationship of all stakeholders in a business, increasing the trust between them, which is essential to its growth. This is done through some principles and tools. Among the principles you can highlight transparency, equity, corporate responsibility and accountability.
There are some tools used by corporate governance to ensure business management control, namely:
- Administrative Council
- Fiscal Council
- Independent audit.
When we talk about transparency it means that all information is made available to the company’s employees regardless of whether it is linked to the financial part of the business or not, as it should include any type of information that is important to everyone. Equity consists of treating everyone equally, taking into account their duties, expectations, needs and interests. The Corporate Responsibility principle states that those charged with governance should value the economic and financial viability of the business as one of their priorities. Accountability refers to how governance agents account for their actions, which must be done in a clear and transparent manner.