Herman has been invited to join the board of a not-for-profit organisation that provides specialist education and training for the non-profit sector. The invitation was extended to him by the CEO who is also the founder and the principal deliverer of services. Due diligence shows that the company is profitable (making a small but comfortable [...]
Graham worked as a management consultant assisting the national operations of a company that has grown over twenty years acquiring ‘non-family’ shareholders who now account for 40% of the capital. The founder’s son, who owns 10% of the shares, heads an overseas division and is a director. The founder retains the remaining 50% and is [...]
The difference between chief executive and Managing Director is one of the subtleties that can confuse board members. Boards have the right to delegate the tasks of running the organisation to any person they rationally believe is capable of performing them. When the board delegates those tasks to one of the directors, that person becomes known as [...]
I do know at least one person who has been the chair of a board for over 20 years (a big organization). Is that unusual? It is an extremely unhealthy situation, but is not unusual for an NPO that never grew up. I’d expect that the same people are doing the same things they’ve done, [...]
It is important that specific terms be used/understood with consistent definitions. Members of a Board of a non-profit organization, by law, are those individuals who have specific responsibilities and liabilities, and who have unrestricted voting rights — except for conflict of interest situations. Anyone who does not have voting rights, therefore, is not a Member [...]
Nonprofit organizations (NPOs) are created to address specific issues/problems/needs and serve specific communities/constituencies, and the primary role/responsibility of the Boards of those NPOs is to represent (the issues/problems/needs of) those communities/constituencies. A Board does this by ensuring that the NPO’s mission is consistent the reason(s) that organization was created … and by adapting that mission [...]
Some considerations to assist in developing an effective board composition.
Here are some thoughts I put together on the issue of board gender balance. I would love to have your feedback on these.
When the Lead Independent Director role was first introduced it was viewed with suspicion. Now, in companies where the incumbent has performed well, it is viewed as an essential component of board success.
I wish I had a dollar for every article on the latest buzz-word that every board should worry about. Or fifty cents for every list of twenty questions board members should ask about the craze. I would hate to be on a board that was so easily sidetracked from their real concern; running the company so that it achieves what it was set up to achieve.
Carter McNamara of Authenticity Consulting, LLC, provides organization development and consultant training services, and is
developer of the Free Management Library.
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Julie Garland-McLellan uses her experience and depth of knowledge in corporate governance to show boards with limited resources how to be more
effective through practical governance innovation and know-how.
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