UNIVERSAL CORPORATE GOVERNANCE STANDARDS: RECOMMENDATIONS FOR THE COMPOSITION OF A BOARD OF DIRECTORS

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Ronald Henry Mynhardt ORCID logo

https://doi.org/10.22495/cocv12i1c2p2

Abstract

In the study reported here, suggestions that the global financial crisis revealed shortcomings in current board of director structures were researched. It was found that the current boards of directors do not have much of a chance of playing a constructive role in the success of any company, giving in to pressure from shareholders to exceed prior results, and failing to monitor the business and to assess its risk profile. In order to enhance board of director efficiency in companies around the world, a new board of director structure called the “management council” is proposed. The structure was discussed with industry experts who agreed that the implementation of the council structure could solve the problems experienced with current board of director structures.

Keywords: Board of Directors, Corporate Governance, Corporate Governance Standards, Global Financial Crisis, Regulatory and Supervisory Activities, Shareholders, Stakeholders, External Audit, Internal Audit

How to cite this paper: Mynhardt, R. H. (2014). Universal corporate governance standards: recommendations for the composition of a board of directors. Corporate Ownership & Control, 12(1-2), 243-250. https://doi.org/10.22495/cocv12i1c2p2