10-1 Discussion: Strategic Advisory Boards in Addition to Statutory Governance?

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Xhzzvr108

Business Finance

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After viewing the Corporate Governance Seminar 2012: Panel Discussion, address the following questions. What is the utility of a strategic advisory (governing) board versus a statutory board? Do you feel that the role of the statutory board could be replaced by independent auditors in Western, Anglo-American firms? What about firms from continental Europe, Asia, Latin America, and Africa?

Refer to the Capstone Discussion Rubric for directions on completing these discussions.

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Hi there, I have just completed the assignment. Please find attached. It has been nice working with you.

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Hello Vallee,
I find your post enlightening and well-researched. In it, you make an interesting point
about the voting process that statutory boards possess which is quite remarkable to me. It is that
such boards ought to have an uneven number of seats according to shareholding percentage so
that a tie never occurs. This is quite a creative way to ensure quick decision-making. I agree that
having the CEO on the board is counterintuitive given that one of the functions of the board is to
perform an oversight role of the management and hold them accountable if need be. It is also true
that the two, statutory and advisory boards, ought not to collude at any point as they are also very
different from each other majorly due to fiduciary responsibilities on statutory boards. I find that
your argument that independent auditors cannot replace the statutory board is on point given the
divergent roles each side plays in the company.
Greetings Abdullah,
Like you, I also enjoyed the different perspectives that the various experience...


Anonymous
Very useful material for studying!

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