A board of directors plays a fundamental role in instilling and maintaining a culture of good corporate governance, which ensures that a company (represented by its executives and employees) acts ethically and within the parameters of the law in its business dealings. The foundation for establishing an effective board of directors begins by gathering a diverse group of members with relevant qualifications, technical competence, skill and experience, who all have a firm understanding of their duties and obligations to the company. What constitutes an effective board and what its composition should be elicits differing opinions, primarily because of the impact of changes in technology on corporate governance. In addition, companies are structured differently and do not necessarily operate in the same manner. A listed company, for example, will generally operate in a more formal manner because it is highly regulated, while a private company might operate less formally. However, the cri...

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