The role of the nonexecutive director is not merely "ticking the boxes" — fiduciary duties, independence and the exercise of reasonable scepticism are just a few concepts that come to mind.
There was excellent coverage of this subject in last week’s FM (Editor’s Note and Boardroom Tales, February 17-23), with mention of certain former nonexecutive directors of companies such as Steinhoff, Tongaat Hulett and Ayo Technology Solutions.
Many a nonexecutive director’s acceptance of appointment is viewed as important for the wrong reason, and responsibilities are only partially fulfilled.
Screeds have been written and are available on this subject, so surely all nonexecutive directors should demonstrate their understanding and commitment? Though investors in JSE-listed and other reputable entities are generally protected, it is accepted that there will occasionally be some errant individuals who are "in it for the ride".
David Winckler
Plettenberg Bay
The FM welcomes concise letters from readers. They can be sent to fmmail@fm.co.za