I believe that the recipe for a good board illustrated in J. Solomon’s book “The Role of Boards in Corporate Governance” is appropriate. Based on my assessment, the list contains good and necessary ingredients for making a good board. The list of preferences might be different, but the combination leads to the same desired result, which is to have a good board. My list of preferences with respect to the recipe for a good board is listed below.
- The board should be held responsible and have authority.
- The board should have effective communication within and outside the company.
- The board should maintain the integrity and embrace business ethics.
- Board members should maintain the balance of power.
- No individual should dominate during decision-making, and all views should be considered.
- Board members should be accountable for the financial records of the organization.
- The board members should have frequent meetings when necessary.
- The board should embrace new ideas and not resist change in the management of the company.
- The board members should adopt a holistic approach to management.
- The board should deal with the dynamic nature of business and must understand the business well and the risks involved.
Based on the above list, I believe that the most important ingredients of the making of a recipe of a good board are accountability, responsibility, authority, integrity, good decision-making, and the ability to embrace new ideas.