Australian private companies are trying to make good corporate governance, but the change is challenging. The correlation between well-developed corporate governance practices and business success is clear yet, paradoxically, for many private companies the transition to good governance is fraught with peril.
Private companies increasingly see adopting good governance as a way to achieve greater success, and most are working hard to make the transition. The growing complexity of global supply chains, and demands for greater publicity , also includes data privacy laws and regulations (such as the EU’s General Data Protection Regulation and Australia’s Notifiable Data Breaches Scheme ) accountability and social responsibility.
Good governance improves business performance. A study from the University of Wollongong , for example, provides “robust evidence in support of the theory theory that corporate governance matters for a firm’s operating performance.”
Board management software provides the tools and simplifies the transition. Critically, communication and collaboration are at the heart of good governance, and board management software both.
Board management software is a comprehensive tool for managing and streamlining board activities. It simplifies and secures communication , and provides up-to-date access to a library of materials.
A group of board members. One of the many different types of board members.
Board management software makes it easier for board members to reach out to each other via the messaging tool. And because this communication is secure, they can speak freely.
This means member collaboration is no longer confined to the boardroom. Votes, survey tools and discussion boards allow committee members to provide feedback as their schedules permit, while keeping to firm deadlines.
Breaking down siloes
Another obstacle private companies can adopt good governance is an inability to share information across the entire company, including the board. Board management software allows the company secretly to gather information from every part of the organization and make it available to all directors.
This ensures that all members have ready access to meeting minutes, strategic plans, policy manuals, orientation materials, audit reports, risk reports and more. Importantly, that knowledge is shared, rather than being exclusive to the owners, and can be updated in real time as needed.
Access to these documents remains controlled, so they’re only available to those with the requisite privileges. Administrators can easily add or remove members, edit profiles and assist with forgotten passwords. Members can be assigned to one or more committees and committee information remains private, only viewable by the relevant members.
Meeting materials can be scheduled for automatic archival or deletion. Permissions can be at the document level, allowing administrators to share documents with specific individuals. Administrators can configure their organization’s security requirements, such as enabling or disabling printing, emailing and annotations.
In addition, time and money are saved to print and distribute paper documents.
Meetings become more effective
Organizing board meetings at private companies is often a challenge, as company secretaries do not always have the resources and staff that are available in larger public companies.
Board management software supports meeting agendas, track where board members are and where they are when they are meetings, arrange proxies if necessary, create surveys and manage voting. In fact, the software can handle virtually every meeting-related function.
This means that private companies can afford to hold more meetings or even set up committees and hold separate meetings.
The Choice Is Diligent Governance Cloud
Diligent Governance Cloud is the most powerful and robust board management software available. It’s an ecosystem of software tools that digitize the board’s various activities and tasks.
Stringent, the scope of governance responsibilities evolves. Governance Cloud allows boards of directors to meet their demands. They can do their best and work in their allotted budgets.
Governance leaders, executives and board directors rely on the industry-leading diligent platform for the most secure and intuitive solution to material management and collaboration. Diligent Boards is a board’s agendas, documents, annotations and discussions.
Company secretaries and board chairs can use the portal to book books in minutes. The portal has been designated virtual rooms for committee work. Portal administrators can designate permissions for user access to avoid problems with confidentiality. If this sounds appealing then contact Diligent for more information
January 29, 2021
Business Continuity Strategy: Options, Best Practice Approaches and Examples
There’s no shortage of things to consider when you’re upgrading your business continuity strategy. For instance: What should your plan cover? What are the critical inputs to the business continuity strategy? What are the different approaches and solutions available? What should the recovery strategies look like within your business…
November 30, 2020
Experts agree: Governance is the best crisis strategy
Your best defence against a crisis is good governance. Whether it’s a global pandemic, a change in senior management or the complexities of running an international organisation, governance provides ‘handrails’ to keep your organisation upright and on-track. This consensus was the unanimous conclusion of the speakers at a recent Diligent…
September 8, 2020
The Importance of Compliance Monitoring
As regulatory compliance obligations continue to multiply, achieving a clear picture of your performance around good governance and compliance is more important than ever. Organisations have responded to this challenge by putting in place increasingly stringent compliance monitoring processes. Larger and more complex businesses and smaller, simpler ones alike face…