Purpose of the board: "To steer the company in the right direction". A board has focus on making sure that the company is making the right strategy and more importantly it is obligatory for the board to ensure that the day to day management is the right management to have.
Two main things:
1. Have the right top management
2. Ensure that the capital of the company is secure
Usually the trick part is how to make a good board. There are no scientific performance evaluation criteria, but usually there is a good understanding if the management is good and if they are listening. So its almost like putting up a good team together.
Annual cycle: 5-7 meetings per year.
If you are an international company, you should have an international board. Of course having the knowledge of the company is more important than the nationality. Particularly only national companies do not really need an international experience.
Employee elected members usually help the board when the company is in trouble. In this situation, these people know what is wrong and that is good input. However, when there are good times then there is not so much value add to the board work to have employee elected presentation.
In most cases the motivation for the board is to maintain their own reputation.
Who steps into the board room: Someone who have had a real bottom line experience as a bottom line manager, and then has done something to be higher than the middle managers. Then is when you enter the board room.
Sometimes you need to be at the right place at the right time to reach the right level.
Ref: Agnete Raaschou
