Reform Realism and the Boardroom

The board of a 21st century corporation has the imperative to navigate the shoals of regulatory landmines without making a shipwreck of its entrepreneurial energy and strategic thrusts, aptly summarizing one major challenge for directors. Having in place effective corporate governance best practices and training directors to understand their duties are essential steps in improving the sustainability of companies. One principle is that a board can delegate, but it cannot abdicate its responsibilities. This speaks to the fundamental division between the board's role, that of strategic direction, and management's duty of executing the board's strategy. The board must monitor management's performance, even though it does not directly carry out the actions. As Koh notes, courts have rejected the argument that a lower standard of care should apply to non-executive directors than to executive directors.

Bibliographic Details

Main Author:	World Bank
Format:	Brief biblioteca
Language:	English
Published:	World Bank, Washington, DC 2007-01
Subjects:	ACQUISITIONS, AGENCY COST, ARBITRATION, BANKRUPTCIES, BANKS, BOARD MEMBER, BOARD MEMBERS, BUDGETARY CONTROLS, BUSINESS JUDGMENT RULE, CAPITAL EXPENDITURE, CEO, CO-OPERATIVE, COLLECTIVE, COMMON LAW, COMMON LAWS, COMPANIES ACT, COMPANY, COMPLIANCE COSTS, CONFIDENTIALITY, CONGLOMERATE, CORPORATE AFFAIRS, CORPORATE FINANCE, CORPORATE LAW, CORPORATE LAW REFORM, CORPORATE LAWS, CORPORATE OPPORTUNITIES, CORPORATE OPPORTUNITY, CORPORATE PRACTICES, CORPORATE SECURITIES, CORPORATION, CORPORATIONS, CREDITORS, DERIVATIVE, DEVELOPING COUNTRIES, DISCLOSURE OBLIGATION, DUTY OF CARE, ECONOMIC CRISIS, ENTREPRENEUR, FIDUCIARY DUTIES, FIDUCIARY DUTY, FINANCE CORPORATION, FIRMS, GLOBAL CORPORATE GOVERNANCE, GLOBALIZATION, GOVERNMENT CORPORATIONS, GOVERNMENT REGULATION, HOLDING, HOLDING COMPANY, INDEPENDENT DIRECTOR, INDEPENDENT DIRECTORS, INDIVIDUALS, INSIDER TRADING, INSURANCE, INSURANCE COMPANY, INTERESTS OF EMPLOYEES, INTERNAL CONTROLS, INTERNATIONAL FINANCE, JOINT VENTURE, JURISDICTIONS, LAW FIRM, LIABILITY, LIABILITY TO DIRECTORS, LTD., MANAGERS, MERGERS, MINORITY SHAREHOLDER, MINORITY SHAREHOLDERS, MISMANAGEMENT, PARTY, PERSONS, REGULATORS, REGULATORY AUTHORITIES, REGULATORY ENVIRONMENT, REGULATORY FRAMEWORK, REGULATORY REGIME, SAVINGS, SECURITIES INDUSTRY, SECURITIES LAW, SHAREHOLDER, SHAREHOLDER RELATIONSHIP, SHAREHOLDER VALUE, SHAREHOLDERS, SOCIAL PERFORMANCE, SOCIETIES, SOCIETY, STAKEHOLDERS, SUBSIDIARIES, SUBSIDIARY, TECHNOLOGICAL CHANGE, TRANSACTION, TRANSITION ECONOMIES, TRUSTEE, WEALTH CREATION,
Online Access:	http://documents.worldbank.org/curated/en/2007/01/9448035/reform-realism-boardroom http://hdl.handle.net/10986/11173
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