TAAlina and Thoughts

Every board is different, but each is driven by its own culture or savoir-faire. I have noticed two “tensions” at play: (1) management – board and (2) board – individual director.These two tensions affect where the board is in the governance spectrum: a micro-managing working board? Or at the other end of the spectrum, a ratifying board. Or does the board veer from one end, to the other depending on circumstances? In the first type of tension, the management’s views of the role of the board will set the stage. If management expects value-added contribution and support from the board, the shareholders will inevitably reap this benefit from the mutual respect engendered. The best of directors will be nominated, and the best stewardship will materialize. On the other hand, when owners of the company (such as a company that was founded by a group of entrepreneurs/managers or is family-controlled/run or is state-owned) view directors and governance as a necessary cost to accessing publi...

I caught up with an old friend recently, Dr Loh Leng Hua, who is a scholar in corporate governance. We talked about our favourite subject and the conversation led me to my own musings. Reflecting on the past seven years of my role as an independent board director, my approach to governance of companies has changed several times. I have learned a lot more through doing the work, being in the trenches , than by reading books and attending training sessions. No doubt, the academic learning is invaluable especially when I’m keeping up with the demands of the times and the vocation, but it is through the practice of governance that I have matured as a director. This next series of six mini articles reveals my current thoughts, and I invite you to be my partner in doing governance better. I look forward to hearing your views. Happy Year of the Dragon!