CG_class 03_board.pdf - Class 3 THE ROLE OF THE BOARD OF DIRECTORS 1 Learning Objectives 1 Why companies need to have a board of directors 2 The

CG_class 03_board.pdf - Class 3 THE ROLE OF THE BOARD OF...

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Unformatted text preview: Class 3 THE ROLE OF THE BOARD OF DIRECTORS 1 Learning Objectives 1. Why companies need to have a board of directors 2. The different types of directors 3. The Corporations Act 2001 requirements relating to the operation of boards of directors 4. The composition and operation of the board of directors 5. Research studies relating to the impact of independent boards of directors 2 Why companies need to have a board of directors •The board of directors is the ultimate decision-making body of an organisation • It is responsible for major investment, financial and operation policies and strategic directions of the company. •董事会是组织的最终决策机构 • Provides important supervisory role of company executive management •负责公司重⼤大投资、财务和运营政策及战略略⽅方向。 •为公司⾏行行政管理理提供重要的监督作⽤用 •组织公司治理理战略略和实践的核⼼心 •设定组织的公司治理理基调。 • Central cog in an organisation’s corporate governance strategies and practices • Sets the corporate governance tone of the organisation. 3 Why companies need to have a board of directors (Cont’d) ⽂文本 Why is it necessary for a company to even have a board of directors? Could a company be run more effectively by executive management, without the need for a board of directors? •It is necessary under the Corporations Act 2001 for all Australian companies to have director/s. •A proprietary company must have at least one director (s 201A (1)) • A public company must have at least three directors (s 201A (2)) 为什什么⼀一个公司甚⾄至需要⼀一个董事会?在不不需要董事会的情况下,执⾏行行管理理层能更更有效地管理理公司吗? •根据《2001年年公司法》,所有澳⼤大利利亚公司都必须有董事。 •⼀一家⾃自营公司必须⾄至少有⼀一名董事(第201A(1)条) •上市公司必须⾄至少有三名董事(第201A(2)条) 4 Why companies need to have a board of directors (Cont’d) board of directors is bad or not for company Potential value adding comes in different forms, depends upon the theoretical perspective 1. Agency theory perspective: •The board can provide oversight of senior management, ensuring that managers do not abuse their power to the detriment of company shareholders. •The board of director’s oversight and monitoring role is to minimise conflict. 2. 潜在价值的增加有不不同的形式,取决于理理论视⻆角 1. 代理理理理论的⻆角度来看: •董事会可以对⾼高级管理理层进⾏行行监督,确保经理理们不不会滥⽤用权⼒力力损害公司股东的利利益。 •董事会的监督和监督职责是将冲突最⼩小化。 2. 利利益相关者理理论的⻆角度来看: •董事对于公司结构⾄至关重要 •尽管董事们仍然关注股东代理理冲突问题,但他们在考虑更更⼴广泛的利利益相关者问题时也很重要 Stakeholder theory perspective: •directors are essential to the corporate mix balance benefit between stakeholders, dont need board of directors •While still concerned with shareholder agency conflict issues, the directors are also important in considering broader stakeholder issues. 5 Why companies need to have a board of directors (Cont’d) 3. Resource dependency theory perspective: •a firms level of success is contingent on its ability to control its external resources. •a company’s directors provide crucial links to external resources that need to be maximised if a company is to achieve its goals. 资源依赖理理论视⻆角: ⼀一个公司的成功程度取决于它控制外部资源的能⼒力力。 •⼀一家公司的董事提供了了通往外部资源的关键链接,如果⼀一家公司要实现其⽬目标,这些外部资源需要最⼤大化。 4. 管理理理理论: •质疑设⽴立独⽴立董事会的必要性。 •拒绝经理理是效⽤用最⼤大化者的基本前提,以及⼏几乎完全由经济考虑驱动的决策 3. • 4. Stewardship theory : •questions the need for a separate board of directors. •rejects fundamental premise that managers are utility maximisers, and that decisions are driven almost exclusively by economic considerations 6 The different types of boards of directors ‘unitary’ board structure. one tier stucture single structure •stereotypical Australian company board of directors • directors are assumed to represent the shareholders and provide supervisory and management roles of executive management. •composition of directors can vary considerably, but most large Australian companies have a mix of executive and non executive directors. •the directors act as the direct link between the shareholders and the executive managers of the company. •unitary board structure is the predominant structure in most Anglo – Saxon countries, including the US and the UK, but that does not mean it is necessarily the best or the only board model. ⾣酉”董事会结构。 刻板的澳⼤大利利亚公司董事会 •假定董事代表股东,并提供执⾏行行管理理层的监督和管理理⻆角⾊色。 •董事的构成可以有很⼤大的不不同,但⼤大多数澳⼤大利利亚⼤大公司都有执⾏行行董事和⾮非执⾏行行董事。 •董事是公司股东和执⾏行行经理理之间的直接纽带。 •单⼀一的董事会结构是⼤大多数盎格鲁-撒克逊国家(包括美国和英国)的主导结构,但这并不不意味着它必然是最好的或唯⼀一的董事会模式。 “ • 7 The different types of board of directors (Cont’d) ‘two-tier’ model •exists in several European countries including Germany. •Fundamental to this structure is the existence of two separate boards: a management board & a supervisory board •the management board is concerned with the specific business and operational dealings of the company. •the supervisory board is made up of shareholders and employees and the role of supervising management. 两层”模型 存在于⼏几个欧洲国家,包括德国。 •这种结构的基础是存在两个独⽴立的董事会:⼀一个管理理委员会和⼀一个监事会 •管理理委员会关注公司的具体业务和运营交易易。 •监事会由股东和员⼯工组成,起到监督管理理的作⽤用。 “ • 8 The different types of board of directors (Cont’d) 对⽐比两个structure A few observations can be made about board structures: 1. a two – tiered structure facilitates the inclusion of a wider group of stakeholders in the broad supervisory process. 2. the success of the two – tiered structure is predicated on a good working relationship between the chair of the supervisory board and the CEO who leads the management board. 3. the differences between the unitary and two – tiered structure are less pronounced than appears to be the case. 关于董事会结构可以提出以下⼏几点意⻅见: 1. 两层架构有助更更⼴广泛的利利益相关者参与⼴广泛的监管过程。 2. 监事会主席和管理理委员会主席之间的良好⼯工作关系是双层结构成功的基础。 3.单⼀一制和两级制之间的差别并不不象表⾯面上那样明显。 9 The Corporations Act 2001 requirements relating to the operation of boards of directors •The legal framework for the internal governance of the company are either the ‘replaceable rules’, the constitution or a combination of both. 公司内部治理理的法律律框架要么是“可替换规则”,要么是宪法,要么是两者的结合。 •Replaceable rules are applicable to companies registered after 1998. A company may modify some or all of the replaceable rules by adopting a constitution. 可替换规则适⽤用于1998年年以后注册的公司。公司可以通过制定章程来修改部分或全部可替换的规则 •A constitution is a written document that establishes the rules and principles of the company. 章程是建⽴立公司规则和原则的书⾯面⽂文件 •While there is detailed prescription on the duties of individual directors (reviewed in chapter 5), there is comparatively less legal prescription concerning the role of the board as a whole. 虽然对个别董事的职责有详细的规定(⻅见第5章),但对董事会整体⻆角⾊色的规定相对较少。 •The statutory powers that flow to directors, and therefore the board, are a function of the authority to manage the affairs of the company under s 198A. • 流向董事的法定权⼒力力,因此董事会,是根据第198A条管理理公司事务的权⼒力力的职能。 10 The Corporations Act 2001 requirements relating to the operation of boards of directors DIRECTORS MEETINGS Under s 248C - replaceable rule, a director’s meeting may be called by a director giving reasonable notice individually to each director. The notice may be given orally or in writing, and an accidental omission to notify one of the directors of the meeting does not automatically invalidate the meeting. Under s 1322 (3), the meeting will only be invalid if the court, or ASIC declares proceedings at the meeting to be void 董事会议 根据第248C条可替换规则,董事可通过单独向每位董事发出合理理通知的⽅方式召开董事会议。 该通知可以以⼝口头或书⾯面形式发出,如意外遗漏漏通知会议的⼀一名董事,并不不会⾃自动使会议失效。 根据第1322(3)条,只有当法院或ASIC在会议上宣布诉讼⽆无效时,会议才会⽆无效 11 The composition and operation of the board of directors What is the optimal composition for a board of directors? •the board of directors is the central cog in an organisations corporate governance strategies and practices. •the corporate governance tone of an organisation is set by the board. •it would be very unlikely for an organisation to have quality corporate governance in conjunction with a dysfunctional and poorly performing board. 董事会的最佳构成是什什么? •董事会是组织公司治理理战略略和实践的中⼼心⻮齿轮。 •组织的公司治理理基调由董事会决定。 •⼀一个组织不不太可能同时拥有⾼高质量量的公司治理理和功能失调且表现糟糕的董事会。 12 The composition and operation of the board of directors BOARD SIZE There is no one optimal board size. •s 201A - a proprietary company - at least one director who must ordinarily reside in Australia. •S 201A - a public company - at least three directors, of which two must ordinarily reside in Australia. •The balance between streamlined decision making, and board discussion become cumbersome. •Cost – benefit decision 董事会规模 没有⼀一个最优的董事会规模。 •s 201A——⼀一家⾃自营公司——⾄至少有⼀一名董事通常必须居住在澳⼤大利利亚。 •S 201A——⼀一家上市公司——⾄至少有三名董事,其中两名通常必须居住在澳⼤大利利亚。 •简化决策和董事会讨论之间的平衡变得繁琐。 •成本效益决策 •也许⼀一个更更⼤大/更更复杂的组织会⽐比⼀一个更更⼩小/不不那么复杂的组织需要更更多的董事会成员 •Perhaps -A larger/more complex organisation will require more board members than a smaller/less complex organisation 13 The composition and operation of the board of directors BOARD SIZE There are two main schools of thought concerning the optimal size of company boards. 1. Board’s ability to monitor the executive management of the company increases with its number of directors on the board, who scrutinise management. 2. Larger boards hinder management oversight and are less effective 董事会规模 关于公司董事会的最佳规模,主要有两种观点。 1. 董事会监督公司执⾏行行管理理层的能⼒力力随着董事会中审查管理理层的董事⼈人数的增加⽽而增强。 2. 更更⼤大的董事会阻碍了了管理理监督,效率也更更低 14 The composition and operation of the board of directors DIRECTOR SKILL BASE IFSA (p.18) - competent individuals who have the requisite skills and experience The ASX CGC (p.20) - directors possessing an appropriate range if skills and expertise Nicholson and Kiel (2004) stress the importance of the intellectual capital of the board. 导演技能基础 IFSA (p.18) -具备所需技能和经验的合格⼈人⼠士 ASX CGC (p.20) -拥有适当范围的if技能和专业知识的董事 Nicholson和Kiel(2004)强调董事会智⼒力力资本的重要性。 15 The composition and operation of the board of directors THE BOARD MIX – ACHIEVING SYNERGIES 董事会混合-实现协同效应 •There needs to be synergy between directors, so they can work effectively as a group. 董事之间需要有协同作⽤用,这样他们才能作为⼀一个团队有效地⼯工作。 •A dysfunctional board is likely impede on the effectiveness of an organisation’s corporate governance 功能失调的董事会可能会妨碍组织的公司治理理效率 •A board composed solely of executives from the company would be most effective as they have a good understanding of the company/industry? ⼀一个完全由公司⾼高管组成的董事会最有效,因为他们对公司/⾏行行业有很好的了了解 •Most normative pronouncements on the composition of the board highlight the importance of having a mix between executive and non executive directors 关于董事会组成的⼤大多数规范性声明都强调了了执⾏行行董事和⾮非执⾏行行董事混合的重要性 • The ASX CGC - majority of independent directors (Recommendation 2.1) • IFSA - majority of independent directors (p.19). ⼤大多数独⽴立董事(建议2.1) ASX CGC - 独⽴立董事占多数(p.19)。 • Cadbury Report (1992) - the board should contain at least three non – executive directors and of which at least two should be independent. 吉百利利报告 董事会应包含⾄至少三名⾮非执⾏行行董事,其中⾄至少应有两名独⽴立董事。 (1992)- 16 The composition and operation of the board of directors FEMALE DIRECTORS •Disproportionately small number of women on Australian company boards. ⼥女女性董事 •澳⼤大利利亚公司董事会中⼥女女性⽐比例例极低。 •《法律律研究所期刊》(The Law Institute Journal) 2005年年的报告显示,尽管澳⼤大利利亚⼈人⼝口中有51%是⼥女女性,但只有8.4%的澳⼤大利利亚公司有⼥女女性董事代表。 •The Law Institute Journal in 2005 reported only 8.4% of Australian companies have women board member representatives, despite Australia’s population being 51% female. •UKs Cranfield Centre for Developing Women Business Leaders study found: • there was a positive association between a company’s corporate governance and the presence of women on the company board. • companies with good corporate governance were more likely to have women directors 英国克兰菲尔德⼥女女性商业领袖发展中⼼心的研究发现: 公司的公司治理理与公司董事会中⼥女女性的存在存在着积极的联系。 •公司治理理良好的公司更更可能有⼥女女性董事 • • 17 The composition and operation of the board of directors FEMALE DIRECTORS •Studies suggest benefits would result from companies taking on more women directors. However, we need to be careful in considering the difference between association and causation. •It might be that the presence of women in senior positions caused an improvement in corporate governance/financial performance. 研究表明,公司聘⽤用更更多⼥女女性董事会带来好处。然⽽而,我们需要仔细考虑关联和因果之间的区别。 ⼥女女性担任⾼高级职位可能会改善公司治理理/财务业绩。 •或者,公司治理理良好/财务业绩良好的公司可能会被任命⼥女女性进⼊入董事会的想法所吸引。 • • •Or, it might be that companies with good corporate governance/good financial performance might be attracted to the idea of appointing women to their boards. 18 The composition and operation of the board of directors DIRECTOR INDEPENDENCE •An effective board will contain ethical, skilled, well connected and critically thinking individuals who contribute special expertise to the company. ⼀一个有效的董事会将包括有道德、有技能、有良好关系和具有批判性思维的个⼈人,他们将为公司贡献特殊的专业知识。 •It is arguable whether boards necessarily have to have independent boards. • 董事会是否必须有独⽴立的董事会是有争议的。 •US Blue Ribbon Report states explicitly (pp.21-22): “Most Importantly, the board overall should consist of a majority of independent directors…….” 美国蓝丝带报告明确指出 ⻚页 (21-22 “ ): 最重要的是,董事会应该由⼤大多数独⽴立董事组成……” •The ASX CGC and also IFSA both recommend that the board be made up of a majority of independent directors. ASX CGC 19 和IFSA都建议董事会由⼤大多数独⽴立董事组成。 The composition and operation of the board of directors 董事会的组成和运作 WHAT CONSTITUTES AN INDEPENDENT DIRECTOR? •It is important to understand that a non – executive director is not necessarily an independent director. •Some non – executive directors are independent; others are not •A non – executive director is a director who is not part of the current management team of the company. 什什么是独⽴立董事? •重要的是要明⽩白,⾮非执⾏行行董事不不⼀一定是独⽴立董事。 •⼀一些⾮非执⾏行行董事是独⽴立的;其他⼈人没有 •⾮非执⾏行行董事是指不不属于公司当前管理理团队的董事。 20 The composition and operation of the board of directors WHAT CONSTITUTES AN INDEPENDENT DIRECTOR? In its report, the ASX CGC (2007) provides guidance on assessing independence status of directors. A failure of independence: 什什么是独⽴立董事? ASX CGC(2007)在其报告中提供了了关于评估董事独⽴立性地位的指导。独⽴立性的失败: 1. Is a substantial shareholder of the company 2. Is employed or has been employed by the company in an executive capacity in the previous three years 3. Has been an advisor or consultant to the company in the previous three years ⽂文本 是公司的⼤大股东吗 是否受雇于或曾受雇于公司的⾏行行政⼈人员 过去三年年的⽣生产能⼒力力 3.在过去三年年⾥里里⼀一直担任公司的顾问吗 4. 是公司的材料料客户还是供应商 5. 与公司有重⼤大合同关系。 1. 2. 4. Is a material customer or supplier to the company 5. Has a material contractual relationship with the company. 21 The composition and operation of the board of directors LENGTH OF TENURE 任期内的⻓长度 •There is no consideration of the maximum tenure of a director and whether, after a particular length of service, a directors independence may be jeopardised. 没有考虑董事的最⻓长任期,以及在特定任期结束后,董事的独⽴立性是否会受到损害。 •ASX CGC- whether a director had served on the board, for a period which could, or could reasonably be perceived to, materially interfere with the directors ability to act in the best interests of the company (p.20). 董事是否曾在董事会任职,是否在⼀一段时间内可能或可以合理理地被认为对董事⾏行行使公司最⼤大利利益的⾏行行为产⽣生重⼤大影响(p.20)。 ASX CGC- 22 The composition and operation of the board of directors LEVEL OF TRANSACTING – MATERIALITY THRESHOLDS •An important component of the ASX CGC’s independence criteria relates to the levels of transaction with the company that the directors can engage in – focus is on materiality . •Many Australian companies established that director independence should be established based on the materiality threshold of 5%. •Australian Accounting Standards AASB 1031 ‘Materiality’, information is material if its omission, misstatement or non – disclosure has the potential to adversely affect decisions about the allocation of scarce resources or the discharge of accountability by the management or the governing body of the entity 交易易⽔水平-重要性阈值 •ASX CGC的独⽴立标准的⼀一个重要组成部分与董事可以参与的与公司的交易易⽔水平有关——重点是重要性。 •许多澳⼤大利利亚公司认为,董事独⽴立性应该建⽴立在5%的重要性⻔门槛上。 •澳⼤大利利亚会计准则AASB 1031“重要性”,如果信息的遗漏漏、错报或不不披露露有可能对有关稀缺资源分配的决策或管理理机构或实体治理理机构的责任履履⾏行行产⽣生不不利利影响,则该信息是重要的 23 The composition and operation of the board of directors INDEPENDENT DIRECTORS – CONFLICTING VIEWS The push toward independent directors is based on the normative belief that Directors can: ◦ ◦ ◦ ◦ add value to a board by making independent judgement minimise agency conflict oversee the performance of executive management bringing fresh perspectives. 独⽴立董事-意⻅见冲突 ◦ ◦ ◦ ◦ wider representation focus in decision making utilization of resources and contacts improvement of the public perception of the board. 对独⽴立董事的推动基于⼀一种规范性信念,即董事可以: ◦通过作出独⽴立的判断,实现对董事会的附加价值 ◦监督执⾏行行管理理层的表现 ◦带来新的视⻆角。 这使得: ◦更更⼴广泛的代表 ◦关注决策 ◦利利⽤用资源和接触 ◦改善公众对董事会的看法。 This enables: From agency theory and stakeholder theory perspective, independent directors are a non–negotiable part of the board of director mix. 从代理理理理论和利利益相关者理理论来看,独⽴立董事是董事会结构中不不可协商的⼀一部分。 24 The composition and operation of the board of directors THE BOARD CHAIR leader of board of directors The role of the board chair is demanding, significant and high profile. ASX CGC (p.17): - The Chair is responsible for the leadership of the board and for the efficient organisation and conduct of the boards functioning ⽂文本 董事会主席 董事会主席的作⽤用是艰巨的、重要的和引⼈人注⽬目的。 澳洲证券交易易所(第17⻚页):-主席负责董事会的领导⼯工作,并负责有效地组织和管理理董事会的运作 国际唱⽚片业协会(临21):-主席在领导执⾏行行局⽅方⾯面的作⽤用,包括与⾸首席执⾏行行官合作确定执⾏行行局议程 促进理理事会其他成员对其审议⼯工作的贡献是国际惯例例的另⼀一个关键问题。 IFSA (p.21): - The Chairpersons role in leading the board, including working with the chief executive officer to determine the board agenda and fostering the contribution of other members of the board to its deliberations, is another crucial issue of international practice. 25 Research studies relating to the impact of independent boards of directors The board of directors has been the focus of empirical research for several decades. Independent boards Several studies have shown that a company with an independent board ismore likely to engage in quality financial reporting than with a company without an independent board. CEO and board chair ⼏几⼗十年年来,董事会⼀一直是实证研究的焦点。 Independent 董事会 ⼏几项研究表明,与没有独⽴立董事会的公司相⽐比,拥有独⽴立董事会的公司更更有可能进⾏行行⾼高质量量的 财务报告。 CEO 和 董事会 主席 董事会主席和⾸首席执⾏行行官的⻆角⾊色分离是⼀一项重要的公司治理理战略略,也是代理理理理论的核⼼心 Splitting the role of Board Chair and CEO is an important corporate governance strategy and central to agency theory. 26 ...
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