The Board of directors is the heart and brain of a Company. The Board offers strategic leadership and direction through regular meetings wherein strategies are determined to ensure the proper functionality of company operations.

The effectiveness of the board to a large extent impacts the performance of a company. As stewards of the organization, the board not only sets the strategic direction for the company and oversees business conduct, but also ensures that your company is compliant with relevant laws and values.

Every functional board requires capacity building sessions, evaluations, and clear roles to perform such duties effectively. This is achieved by undertaking a board evaluation exercise.

Board Evaluation refers to measures that aid effectiveness, transparency, and accountability of board members, especially in the aspect of board governance. The board evaluation process looks at what the board practices vis-à-vis corporate governance best practices.

IMPORTANCE OF CONDUCTING A BOARD EVALUATION

• Review the existing Governance framework in place and assess its effectiveness on the operation of the company.
• Review the existing board charters and assess if the members have a clear board job description
• Review the effectiveness of board meetings.
• Review board documentation and assess whether the directors are implementing their mandate in line with the organization’s strategic plan.
• Review whether the company been met its objectives from the impact of the current board and make recommendations to enhance the board’s effectiveness
• Review the overall engagement of the board in the company.
• Review the level of adoption of accepted governance structures that fit with the culture of the organization.

PROCESS OF CONDUCTING A BOARD EVALUATION

• Carrying out a preliminary inquiry prior to the development of a detailed plan of action. This is implemented by obtaining relevant evidence documents to be reviewed include:
  1. The Memorandum and Articles of Association/Constitution.
  2. Board Charter/Policies.
  3. Board/Committee Minute Book.
  4. Past Board Evaluation reports.
  5. Board Attendance Book.
  6. Board Work Plans.
  7. Board Training Schedule.
  8. Directors Files/Appointment Letters

• Developing the director’s self and peer review questionnaires which shall be used during the board evaluation process.
• Assessing whether the board, its committees understand and have performed their duties and responsibilities
• Assessing the effectiveness of the board composition and structure
• Making observations relevant to board dynamics, operations, structures, and performance.
• Analyzing board structure and committee meeting materials.
• Assessing board governance documents i.e. the board charter, code of conduct, director qualification standards, and company documents like the code of conduct and ethics.
• Reviewing the company culture, performance, and strategy.
• Reviewing the level of stakeholder engagement
• Assessing the board’s mandate in management performance and succession planning.

How we can help

We shall be pleased to assist your company to undertake a board evaluation exercise within your company Board. The primary aim of the process is to align the objectives and operations of the Board to the corporate governance best practices.

Kindly get in touch with us for further discussions.