Shareholders, regulators, markets and wider society are less willing to hear excuses for governance errors. However, it is a genuine challenge for directors to stay on top of company policy and understand how this fits with events, particularly in an international business hub like Luxembourg. This explains the rising popularity of board management software.
Even directors with strong cognitive skills will not be able to keep abreast of the full details of company policy. Most independent directors have multiple mandates, adding to the complexity of ensuring they are working with the freshest information and intelligence. This maximises the likelihood of directors being able to add value efficiently by spotting risks and opportunities. It is particularly valuable in the Luxembourg context to help boards work together remotely cross-border.
Tracking the past and the present governance challenges
Just to cite some of the hot button issues in Luxembourg at the moment, what is the evolving risk-based policy approach to anti money laundering for each entity? What about specific cyber security procedures? Fund boards need to monitor liquidity policy and practice, ideally on an on-going basis. ESG policy must match evolving social norms. What is the state of the market, and how could the latest news event affect the company and the competition?
Board management software not only provides the information and functionality directors need, it demonstrates to regulators that these challenges are being taken seriously. It also helps stay on top of important regulatory filing and compliance tasks. Of the board management software tools on the market, Diligent’s board portal software is the market leader. It provides a single source of truth with the tools, indicators and analytics directors need to be informed in real time, on the move, in a highly secure environment.
Managing diffuse teams
Managing meeting agendas, board packs and minutes as they are updated and annotated in real time—with this information available on the move from any device—is handled by the company secretary tools. Meeting Minutes software helps too, turning these vital records into active documents with links to previous documents and easy-to-add dynamic action items.
This makes the board portal a secure environment where directors can share and comment on documents in real time before, during and after meetings, using whatever device is most convenient. It is like a virtual boardroom with the ability to communicate, work on documents and vote remotely in a highly secure fashion.
Managing complexity with board management software
Modern Governance by Diligent is how to understand the dealings of often complex networks of company structures, for example information such as the work of boards and their committees, data on subsidies and other entities, market intelligence and analytics.
Diligent Entities for example is a complete board management solution which centralises and manages the corporate record, thus helping to ensure compliance, manage risk and improve decision making. As well as entity information about structures, there are compliance calendars, reminders and workflow management tools. Information about legal, tax, finance, treasury and compliance from around the globe is integrated. This facilitates internal, external and regulatory reporting, providing the right people with the right information at the right time.
Security is of course one of the governance challenges and vital for all companies, therefore all Diligent’s tools are built to leading security standards and are powered by well-protected local data centres. Diligent Messenger adds an extra layer, by keeping communications away from email and WhatsApp, systems which are prone to phishing. This single communication portal also enables past discussions to be stored and accessed.
Not only does board management software provide directors with the professional environment they need to do their work, it demonstrates efficiency and seriousness to outsiders, be they partners, clients or regulators. Diligent products are the market leader, with 650,000 users worldwide. Get in touch to request a demonstration and solve all your governance challenges with Diligent.
Juni 10, 2020
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