I have provided below a link to a post on corpgov.law.harvard.edu by Friso Van der Oord and Reaa Chadha, National Association of Corporate Directors, on Saturday, February 8, 2020. The bottom line: boards (and board committees) need to continue to work toward being more strategic and forward-thinking in light of current and developing risks; be more proactive, faster thinking and faster responding; and be more transparent and accountable. These are all actions and characteristics that are here to stay – many influential people are now calling for board members to more proactively, diligently, visibly, and independently satisfy their fiduciary duties.
The following are the headings to the “five key shifts” that are discussed:
“Implications for Boards
In NACD’s most recent Blue Ribbon Commission Report, Fit for the Future, we outline five key shifts that board leaders should orchestrate to make their boards fit for purpose. These shifts can help transform how the board is composed, how it operates and interacts with the business and stakeholders, and how it holds itself accountable.
1. Boards must engage more proactively, deeply, and frequently on entirely new and fast-changing drivers of strategy and risk.
2. Boards must review their composition through the lens of shifting strategic needs and approach their own renewal to ensure long-term competitive advantage.
3. Boards must adopt a more dynamic operating model and structure.
4. Boards must be much more transparent about how they govern.
5. Boards must hold themselves more accountable for individual-director and collective performance.”
The following is a link to the entire discussion: https://corpgov.law.harvard.edu/2020/02/08/2020-governance-outlook/
Best to you, Dave Tate, Esq.
Remember, every case and situation is different. It is important to obtain and evaluate all of the evidence that is available, and to apply that evidence to the applicable standards and laws. You do need to consult with an attorney and other professionals about your particular situation. This post is not a solicitation for legal or other services inside of or outside of California, and, of course, this post only is a summary of information that changes from time to time, and does not apply to any particular situation or to your specific situation. So . . . you cannot rely on this post for your situation or as legal or other professional advice or representation.
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Best to you, David Tate, Esq. (and inactive California CPA) – practicing in California only.
I am also the Chair of the Business Law Section of the Bar Association of San Francisco.
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