1. Independent Board Leadership: The board must have strong independent leadership to ensure that there is no conflict of interest between the company’s management and the board.
2. Board Composition: The board must be composed of independent directors to ensure that the board is not biased in favor of the company management and shareholders.
3. Risk Management: The board must be responsible for overseeing the company’s risk management activities and ensuring that risks are identified, assessed, and managed effectively.
4. Ethics and Compliance: The board must ensure that the company has an effective ethics and compliance program in place to prevent any unethical behavior or misconduct.
5. Shareholder Rights: The board must respect shareholder rights by ensuring that there is an open dialogue between the board and shareholders and that the company’s corporate governance practices are transparent.
6. Performance Evaluation: The board must evaluate its own performance and the performance of the individual directors and the company management.
7. Financial Reporting and Transparency: The board must ensure that the company’s financial statements are accurate, complete, and transparent.
8. Executive Compensation: The board must ensure that executive compensation is aligned with the company’s long-term performance and is fair and reasonable.
9. Succession Planning: The board must ensure that the company has a succession plan in place for key management and board positions.
10. Active Oversight: The board must be actively involved in overseeing the strategic direction of the company, setting corporate governance policies and practices that reflect the latest best practices.