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1 - The Changing Nature and Functions of Boards of Directors

Published online by Cambridge University Press:  16 November 2022

Jordi Canals
Jordi Canals
Affiliation:
IESE Business School, Barcelona
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Summary

Chapter 1 offers an overview of recent corporate crises and their relationship with the dominant model of boards of directors. I also present a brief historical review of boards of directors and explore why the current generation of boards that was born in the 1990s has fallen short of its expectations. Understanding why the current model has not been effective is relevant. In parallel, a close-up view of the inner workings of some boards sheds additional light on a conundrum overlooked by large-sample statistical studies. A board should understand the company’s business and the industry in which it operates, make sure its long-term orientation is sound and expand their scope beyond simple shareholder value maximization.

Keywords

boards of directorsindependent directorsmanagerialismshareholder primacyboards as the firm’s steward
Type
Chapter
Information
Boards of Directors in Disruptive Times
Improving Corporate Governance Effectiveness
 , pp. 18 - 67
Publisher: Cambridge University Press
Print publication year: 2022

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