-
The board is accountable to the shareholders for the company's financial performance and responsible for the legal and ethical behavior of the company.
-
The board's effectiveness and the quality of its leadership are eventually measured by the financial return it achieves for the shareholders.
-
The board has to establish an effective system for the control of the economic and financial affairs of the company.
By now, international consensus has been reached on what characterises effective corporate governance:
-
Timely and accurate communication on relevant economic and financial aspects of the company.
-
Timely and accurate communication on relevant operating activities in the company.
-
Open and accurate information on the company's internal management and control systems, including their validity and effectiveness.
-
Protection and active promotion of all shareholders' rights.
-
Board members who are independently capable of making decisions on the company strategy and other essential transactions.
-
Board members who are independently capable of appointing management, monitoring management's performance and integrity, and discharging management if necessary.
This can be done in many ways - but you must remember to do and document it. Through several years, the Novo Group has made use of three validated systems as a supplement to operational/ financial reporting:
a) Organisational audit
b) Facilitations
c) Triple bottom line reporting
These are some of our most important internal management and control systems. Their validity and effectiveness have proven high - and we gladly present them to any interested party.