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Identify TWO OR THREE board characteristics that may be beneficial for a company and its shareholders,...

Identify TWO OR THREE board characteristics that may be beneficial for a company and its shareholders, referring to academic research.

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Expert Solution

Two board characteristics that may be beneficial for a company and its shareholders are discussed below:

· Board member skills – Board members range of skills and knowledge are usually broad and diversified these days and this is beneficial for a company and its shareholders to a significant effect. Having a wide range of skills in the board will ensure effective functioning of the company and will ensure high levels of corporate governance. Chances of fraud and misrepresentation will be reduced to a large extent.

· Independence – This is an integral characteristic of board that is highly beneficial for a company and its shareholders. An independent director in the board of directors is someone who does not have a material relationship with a company. An independent director is also not part of a company’s executive team and is not involved in the company’s day to day operations. Presence of independent directors makes the board cleaner and more accountable. This is beneficial for the company as well as its shareholders.

ekkarill92 answered 1 year ago
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