Genius Methods’ experience correlated the information highlighted in this FT article by Ruth Sullivan.
The Grant Thornton The Tone of Governance report states that even given the FTSE 100 governance failures of the past years that only 23% of the reports gave insight into company culture and only 5% made reference to values.
Genius Methods believes that this lack of “tone from the top” is causing “Boardroom Breakdown” which is not easily addressed without the Chairman placing the project at centre stage. We understand the difficulty and the resistence to complete transparency which changed market conditions are demanding. It is a brave Chairman that will rise above the personal agendas, fears and habits of the whole Board and lead the team to greater effectiveness. .
In our experience, Board development is a comfortable and successful way to engage the Board members as a team to determine barriers and solutions to being the best Board possible.
The new UK Corporate Governance Code released in October 2012 calls for improved governance, diversity, auditor engagement and reporting by the Chairman on board behaviour, evaluation, compliance and fair representation of the accounts.
The FSA Consultation Paper on Listing Rule amendments also released this month proposes that at least half the Board is independent.