Board of directors for private and public entities have been urged to adopt modern corporate governance practices to avoid conflicts with management and in turn affecting business operations.
Egypt-based strategic corporate governance consultant, Hesham Gabr, made the remarks in Mangochi in an interview on the sidelines of a workshop organised by Sycamore Consultant to train board members and other senior manager on corporate governance trends.
“Corporate governance is becoming more of a must for a company to adhere to. It is not just a case of complying with the laws, but it is important that organisations make sure that they follow the required standards,” he said.
He said following good corporate governance ethics has the potential to improve performance and sustainability of firms.
“It is important that board of directors adhere to agreed rules and follow the minutes to avoid creating a power struggle between the company and the board,” Gabr said.
In her remarks, Chief Executive Officer for Sycamore Consultant, Heather Msefula, said her organisation engaged the board of directors after noticing that there was lack of balance of power between management and the boards.
“The board and the management’s decisions influence directions of an organisation. If the board’s decisions are not favourable, it means management will not be happy to implement them. This can affect the organisations performance,” Msefula said.