Michael Calleja | Senior Compliance Services Executive | Malta As we find ourselves in that pivotal time of year where subject persons traditionally undertake the important task of updating their Business Risk Assessments (BRAs), Customer
Corporate Governance – an enabler or a blocker?
At the same time, if we are to believe our news headlines of corporate and charitable governance scandals and falling levels of trust, things are steadily getting worse.
So is Corporate Governance an enabler or a blocker?
For me, life is so often a pendulum that swings from one extreme to another, seldom managing to settle in the centre, and the same goes for Corporate Governance.
Rather than the ever-growing corporate governance reports tabled at board and trustee meetings, perhaps if we unpicked a number of recurring themes, we might find some clarity.
Poor Board CompositionThere is considerable discussion around board composition (Executive/Non-Executive, diversity of gender, ethnicity, skills, backgrounds etc.) but for me the key question should, and must, be how effective a board is. I would go so far as to say that if a board is truly effective, then by its very nature it will have a diverse and inclusive board on all measures and representing key stakeholders.
Lack of EffectivenessThe benefits of an effective board are of course endless, the very purpose of a board being to support the executive to fulfil the organisation’s objectives, whether to benefit the shareholders or other stakeholders through widening the knowledge base, introducing fresh, innovative ideas and ensuring sound governance etc.
Information OverloadI am sure many of us have read (or not perhaps entirely beyond the executive summaries?) extensive reports tabled at board meetings only to wonder what value is being added through them. One such exercise that struggles to be taken seriously is the annual board appraisal. These forms are often circulated by the company secretary or administrator and completed by individual directors with varying levels of attention to detail. These things can of course be tricky, balancing honesty with a constructive approach, whilst ensuring ongoing relationships!
The Wrong ChairSimilarly is the vital role that a Chair plays. I am not thinking so much as the chair of a meeting, more the role of a chairperson in the stewardship and leadership of the organisation. It is properly said that the relationship between the Chair and CEO is critical to success; equally, the partnership with the Board is critical for effectiveness of the board.
How Corporate Governance can become an enablerSo, what is to be done? At Aspida Group, we have built our reputation for pragmatic and proactive compliance solutions over the last 20 years. Being leaders to the idea that effective compliance would be an enabler to your organisation, not a block, we are therefore pleased to have identified the similar need within corporate governance in providing pragmatic support and advice at board and senior management level across a diverse range of businesses and organisations. Our services include reviews, board advisory support and company secretarial services where required.
Let Aspida elevate your corporate governance from a blocker to an enabler
Michael Calleja | Senior Compliance Services Executive | Malta Introduction Sanctions serve as a pivotal instrument in the international legal arsenal, utilized by nations and international coalitions to enforce legal standards, safeguard national interests, and
On the 15th of January 2024, the Financial Intelligence Analysis Unit (FIAU) released a pivotal document titled ‘Enforcement Factsheet: A Compilation of Regulatory Actions – 2021/2022’. This publication, available on the FIAU’s website, serves as a comprehensive guide to the enforcement process undertaken by the FIAU in monitoring compliance with Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) obligations by Subject Persons (SPs).