Conduct a review of the governance of your organisation (or one with which you are familiar) in the form of a report to the Chairman (or President) of the Governing Board of Directors. In the brief report use the concepts, tools and techniques learned in this subject to review the structure, process and effectiveness of the governance of the organisation and make recommendations for appropriate improvements.
This report sets out to review corporate governance at a private company, namely, Paramount Insurance Company. The specific objectives were to identify the relevant codes the organisation follows, why they are important and review the structure, process and …show more content…
Paramount’s board consists of one female executive director, Ann Estorffe, out of its eight members. She previously worked for one of the company’s subsidiaries in the Caribbean and thus was deemed fit because of her experience, knowledge and competency on insurance and policymaking.
In addition, there are no young directors on the board. According to the Company Secretary, all of the board members are in excess of sixty five years of age. This is well above the retirement age outlined by the company, which is 60 years.
Some in the company may argue that it is risky to have appointed younger individuals on the board as they lack the experience that comes with age and they are higher risk takers. However, studies have shown that diverse boards may help in formulating strategies, improving productivity and creative problem solving. (Jhunhunwala & Mishra 2012).Appointment to the board and subcommittees
Tricker et al. 2009 makes reference to two reasons why unitary boards create subcommittees:
To enable independent directors to meet separately from the board as a whole, in order to fulfil their oversights roles;
To delegate board activities to reduce the burden on the boards as a whole.
All the directors are