The collapse of Carillion has reignited debate about the effectiveness of non-executive directors. Specifically, the report issued by the Parliamentary select committee in May outlined the role of Carillion’s board of directors in the collapse of the company. As the Professional Body for the non-executive director and board member community, NEDonBoard calls for non-executive directors and board members being required to demonstrate and evidence an understanding of their primary responsibilities to the organisation’s stakeholders and of their legal duties.
The findings of the MPs’ report reinforce the message we have been communicating to our audience of non-executive directors and board members. Taking on a non-executive or board member role entails high responsibilities to the organisation’s stakeholders, duties and liabilities. It requires a good understanding of governance, initial training and ongoing investment in professional development.
The...
