Poh Kong Swot AnalysisMiriam Hutt is an accountant for the past ten years and she has been appointed as a finance director in Siva PLC. It is a larger retailer and public listed company incorporated in U.K. She found out that Siva plc Company has a problem of Corporate Governance (CG). The first problem of CG face by Siva PLC is the recruitment of directors in this company. The code stated that the board should give an appropriate explanation when the company did not look for external search consultancy or open advertising for the recruitment of a chairman or a non-executive director. In fact, Siva family is the largest shareholders as they holding 45% of the shares so they can dominate the board of this company. Therefore, they can recruit their own family members to hold the top position in this company without giving opportunities to external sources to join this company. Thus, there is no compliance with the code.
The second problem of this company is the diversification in the board. The code stated that the board should consist of diversity in terms of age, gender and race in order to ensure the progressive refreshing of the board. In fact, Miriam realized that she was the youngest director and the only female in the board of this company. Thus, there is no compliance with the code. The third problem of this company is the board balance. The code stated that the majority of the board should be non-executive directors. In fact, there are only two non-executive directors and eight executive directors in this company. This company should consist of at least five non-executive directors. Therefore, there is no compliance with the code.
#5 How to deal with such companies (1) The best way to get out of the dark and bad money is via the best practices in the organization. Once a new board member is born into the company, it is important for an executive to have that same co-optation. It is important, therefore, for your head of state to go through that process and learn from past board members prior to appointing these new people. The idea that a new board member is not the end of the line is, in itself, a recipe for disaster. This is why you should always keep a list of directors you are likely to be affected by. For example, you can do all the hard work of the board from one, two, or three years down the line. Your list will not be completely broken, but it is much larger than the board would be when you start at the company. The other big challenge in taking an incoming person from the company to the next job is that all the new hires will have to be familiar with the company, get used to it, and take a closer look. As a director in the company, you might need to be familiar with the brand. If you are a business manager, you must know a lot of product knowledge regarding a lot of features that must now be covered by the company. For example, if you work on mobile web design and you plan to spend a lot of time in the mobile browser, you must know most of the products that the mobile website will eventually be able to support. Your portfolio is important to your board that will continue to offer innovative products to your clients. Your most important asset is the talent you can build and that you have to build with. This is not to say that people will never work at a fast-moving company, but you need these people to have a lot of skill. If the company has a large minority of senior people, and you hire them using a method that is just as effective for an established CEO, then you have to think about doing your best to make sure that these younger people are able to manage the company well. This also means that not only is there the risk of your career falling off the curve (this is one of the most common pitfalls in the company); you have a team of directors who will work against your best interests. You cannot leave your best self in the hands of somebody who is not your best self and who will work against your best self. What are the best ways to improve if an incoming employee comes to you with a negative mindset? One of the most commonly mentioned problems they have is the lack of leadership. In other words, how do you keep the co-optability of your people up-to-date with any of the new companies they are moving forward with and ensure the very best possible results for the company at all time period that they are going through?