Clarifying the roles of the different players

EBF’s fascinating Debate on Corporate Governance illustrated the variety of challenges facing those who want to promote good Corporate Governance principles. It explored the term’s different meanings across Europe and how approaches differ when applied to specific organisations, such as NGOs or financial institutions. This diversity may nevertheless confuse some Board members, notably in Small and Medium Sized Enterprises (SMEs) where:

– Shareholders are often Directors and Executives at the same time;
– Board and Executive Meetings ‘intermingle’, and General Meetings are often limited to ‘family reunions’ of the shareholders;
– Shareholders, directors, and executives base their decision making processes on the same set of information.

In the context of SMEs it can be helpful to establish a ‘matrix of reference’ to clarify the role of different players, the nature of various meetings, and the specific content of the differing sets of information to be provided to the decision-makers.

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