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Capable and functioning board of directors is vital for a company’s day-to-day operations – Prof. Abotsi

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Capable and functioning board of directors is vital for a company's day-to-day operations - Prof. Abotsi

Capable and functioning board of directors is vital for a company's day-to-day operations - Prof. Abotsi

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By: Nana Antwi Boasiako

Dean of UPSA Law School, Professor Ernest Kofi Abotsi, has highlighted a crucial issue plaguing Ghanaian companies, the tendency to operate without a board of directors. Many entrepreneurs assume they can manage everything themselves since they founded the company. Speaking at the Maiden edition of the Boardroom Governance Summit on Tuesday October 8 at Accra, Prof. Abotsi stressed that a board is essential for keeping the company running smoothly and ensuring management accountability.

He cited that research shows good governance requires effective board but unfortunately, some companies have boards that rarely meet, except in times of crisis, rendering them ineffective.

He expressed concern that some companies in Ghana have board of directors, but the members themselves are unclear about their responsibilities and roles. This lack of understanding renders the board ineffective, hindering its ability to provide strategic guidance and oversight.

Prof. Abotsi emphasized that a capable and functioning board of directors is vital for a company’s day-to-day operations. It enhances good governance, promotes the welfare of the company, and protects its members, officers, and management.

By prioritizing board effectiveness, he contends, Ghanaian companies can reap numerous benefits, including improved decision-making, risk management, and protection of company interests.

He urged companies to recognize the importance of a well-functioning board and strive to establish and maintain one to promote their overall well-being.

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