The Practical Governance booklet sets out how to implement the duties, powers and functions of the Board. This includes the role of the director in finances, monitoring performance, setting and monitoring policy, designing strategy, risk and compliance governance and directing the CEO.
The booklet defines the Board’s role as controlling and directing the company in accordance with the constitution and applicable laws. The booklet examines why Governance is a bigger matter than what the law dictates and explores the practices, principles, commitment and skills that enable directors to add value while meeting their legal and moral obligations. Governance involves:
- Realising the company’s objects as defined in the Constitution and its potential
- Fulfilling the company’s obligations, and
- Acting in the best interests of the company.
The Practical Governance booklet examines how for directors to be effective they must.
- Implement their duties, functions and powers in the interests of the company they serve
- Be responsive to the changing needs of their stakeholders
- Learn the business they are responsible for
- Understand the environment within which they operate, and
- Know what questions to ask of management and their advisors.
The Practical Governance booklet also asserts that while 100% of the role of the Board is governance, no Board does all the governance for the Company. The CEO, plus the policies and systems used to maintain the good order of the organisation and key validation tests such as accreditation, and the annual audit are also vital parts of good governance. Foremost in governance is the fact that the Board is at the top of the Chain of Leadership and what directors’ do, or do not do, will influence all levels of the organisation.
The author, John Mero, has worked with over 800 boards of public and private companies, not for profits and government agencies. He draws on his vast experience to produce a quick read booklet that addresses the fundamental requirements of successful corporate governance for directors and officers.