CRITERIA FOR THE NOMINATION OF BOARD OF DIRECTORS IN THE CORPORATE GOVERNANCE
Specifically, the nomination of directors by the board is basically based on the director’s qualifications. The Board of Directors strongly believes that an individual must meet the criteria of nomination before the Board of Directors could decide who will be nominated for the given positions. The individuals should possess outstanding achievements in the business, education, public service and work experience in order to be an essential asset or contribution to the board. In the same manner, these individuals should have a required intelligence in order to bring a wide range of skills and abilities on the different business backgrounds and perspectives that would help in positioning the company with its main mission, vision and goals. Of course, all these qualifications would be deliberated by the nominating committee. Additionally, the individuals must possess highest moral values and ethical standards; along with the strong sense of professionalism and extreme dedication to serving the company and most especially to serving the interests of the stockholders. These are the attributions that every individual should possess in order to become a candidate for Board membership.
(http://www.micrel.com/_PDF/investor/Board%20Member%20Nomination%20Process.pdf)
Correspondingly, there are certain criteria in selecting qualified candidates for the Board of Director positions. First, the person must have a relevant management and leadership experience such as a past or present leadership role in a leading public organization or private firm; a past or current leadership role in a prominent university like a senior faculty position in relevant studies. In the same manner, a past elected or appointed senior government official or past or current senior managerial position with a non-profit organization. Second criteria is the candidate should have diverse background and exceptional skills in order to understand fully the legal responsibilities of a director in the governance processes of a public and private company. Furthermore, all candidates must possess the aptitude or diversified experience in company’s governance; in the same fashion, the candidates must have personal traits such as intelligence and wisdom, self-confidence, interpersonal and excellent communication skills, as well as self-courage and curiosity. All these personal traits help in making a substantial contribution on Board’s decision. On the other hand, consideration is also given to those individuals who have wide experience in financial management with established international standards. Third, the candidate for board of director should possess integrity and professionalism which are very important traits for every board member. In like manner, the candidate must also acquire highest standards of personal integrity and independence; as well as sense of objectivity and extreme dedication to serve as a representative of the stakeholders of the corporation. In the same way, each candidate for board member must have a strong commitment and adequate time available to fulfill the duties of being a board member. Equally, the candidate should be willing to serve the corporation for a long span of time in order to contribute significant impact to the effective governance of the corporation.
(http://www.micrel.com/_PDF/investor/Board%20Member%20Nomination%20Process.pdf)
Comparatively, the governance and nominating committee is authorized and accountable to the utilization of various methods in identifying who would be the best candidates to fill the vacancy in the Board of Directors. The Governance and Nominating Committee is highly responsible in investigating each candidate; evaluating his or her suitability and qualification for the position. Similarly, the board committee is also responsible for the recommendation of the nominees for election or reelection to the Board in every annual meeting of the stockholders. More than anything else, the governance and nominating committee is even authorized to review candidate’s background, characteristics, qualities and qualifications; as well as authorized to conduct personal interviews with them. With all these in mind, the proper criteria in nominating deserving candidate for board of director’s position will help the corporation to function effectively as well as efficiently. By mixing all points of view of the board members would provide a well governed organization through establishing well taught policies, objectives for the selection, appointment, support and review of the performance of the chief executives in the corporation. By the same token, the elected members of the board will ensure the adequacy of the available financial resources of the company. And, also they are the one who guard and approve the annual budgets of the organization. At the same time, they are also the one who are accountable for the stakeholder’s performance in the company. More important is to bear in mind that the corporate governance system by the board of directors must promote transparency and efficient marketing plans and strategies for the benefit of the company. Furthermore, the rule of law of the corporation should be clear enough to regulate and implement rules and policies within the corporation that would provide maximum benefits and profits to the employees and to the company.
(http://www.google.com.ph/#hl=en&q=what+is+the+importance+of++nomination+of+board+of+directors+in+corporate+governance&aq=f&aqi=&aql=&oq=&pbx=1&fp=676660f3bda818b0&biw=1024&bih=673)
References:
(http://www.micrel.com/_PDF/investor/Board%20Member%20Nomination%20Process.pdf)
(http://www.micrel.com/_PDF/investor/Board%20Member%20Nomination%20Process.pdf)
(http://www.google.com.ph/#hl=en&q=what+is+the+importance+of++nomination+of+board+of+directors+in+corporate+governance&aq=f&aqi=&aql=&oq=&pbx=1&fp=676660f3bda818b0&biw=1024&bih=673)
Credit:ivythesis.typepad.com
0 comments:
Post a Comment