Right Culture

Abstract

A key to a successful board is a good understanding of the different roles of the management and the board. The board of directors is the stewards of the corporation’s assets, tangible as well as intangible, and should behave in such a manner as to create a climate for the sustainable success and increase in value of the corporation. The board provides guidance and oversight to the management, and the management initiates and implements decisions. A board that interferes with management and assumes an operational role would in effect be a part of the management and therefore less independent from it. Such a board would therefore not be able to credibly exercise its control rights independently.

The only man who makes no mistakes is the man who never does anything.

Teddy Roosevelt